Wednesday, June 22, 2011

CIMB Research has Buy on Sarawak Cable at RM1.42

KUALA LUMPUR: CIMB Equities Research has a technical Buy call on Sarawak Cable Bhd at RM1.42 at which it is trading at a price-to-book value of 1.7 times.

It said on Wednesday, June 22 that Sarawak Cable broke out of its consolidation triangle on Tuesday. This could be seen as a prelude to more upside ahead.

'If we are right, prices should push past its previous high of RM1.46 soon. Thereafter, it should edge closer towards the next resistance at RM1.55 and RM1.65,' it said.

CIMB Research said the technical landscape remains compelling. MACD histogram bars have returned to the black while RSI is also rising.

'Any pullback is an opportunity to accumulate. However, be quick to trim loss once the RM1.30 level is violated. Breaching its 200-day SMA would negate this positive count,' it said.

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