Tuesday, June 14, 2011

CIMB Research has Sell on Ramunia at 48.5 sen

KUALA LUMPUR: CIMB Equities Research has a Sell call on RAMUNIA HOLDINGS BHD [] at 48.5 sen at which it is trading at a price-to-book value of 1.9 times.

It said on Tuesday, June 14 the countertrend rebound from its June's low is probably at its tail end. Sellers resurfaced after prices hit its 30-day SMA.

'With the bears flexing its muscle near its key moving averages, we think the correction from its April's high is not over yet. Technical landscape remains lethargic. MACD is hovering in the negative territory while RSI is below the 50 points mark,' it said.

CIMB Research said investors should use any rebound to sell into strength, as near term gains are likely capped at 50 sen to 52 sen. On the downside, a slip below 44 sen would drag prices lower towards 41 sen. There is also a minor support at 46 sen. Put a buy stop at 52.5 sen.

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