Thursday, June 16, 2011

CIMB Research has Buy on LBS Bina

KUALA LUMPUR: CIMB Equities Research has a technical Buy call on LBS BINA GROUP BHD [] at 67.5 sen at which it is trading at price-to-book value of 0.6 times.

It said on Thursday, June 16 that LBS broke out of its consolidation triangle pattern on Wednesday on strong volume. This could be seen as a prelude to more upside ahead.

'Buying momentum should pick up strongly after prices push above yesterday's high of 69.5 sen. The following resistance levels are 74 sen and 80.5 sen,' it said.

CIMB Research said the technical landscape is improving. MACD histogram bars are rising at a faster pace while RSI is also above the 50pts mark.

'Buy on pullback looks like a good option here. However, be quick to cut loss if prices fall below the 66 sen to 63 sen levels,' it said.

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