Monday, July 11, 2011

CIMB Research has technical Buy on SP Setia at RM4.14

KUALA LUMPUR: CIMB Equities Research has a technical Buy call on SP Setia at RM4.14, at which it is trading at a price-to-earnings for FY12 of 21.8 times and price-to-book value of 2.3 times.

It said on Monday, July 11 SP Setia appears to be still consolidating in a triangle pattern and it is possible to deduce that the triangle it at its tail end of this consolidation.

'From here, we expect prices to kick on higher from here. Technical landscape is improving with its MACD back in positive territory but the momentum is lacking at the moment. RSI on the other hand, stayed above the 40-pts mark, which could be viewed as bullish,' it said.

CIMB Research said traders should buy on any weakness with a stop placed below RM4.01. A breakout above RM4.24 would increase the odds that the next leg is underway. Anything above RM4.45 would confirm that new highs of around RM4.88-RM5 are taking place.

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