Wednesday, August 10, 2011

CIMB Research has Buy on RHB Capital

KUALA LUMPUR: CIMB Equities Research has a technical Buy call on RHB CAPITAL BHD [] at RM8.79 at which it is its trading at a FY12 price-to-earnings of 9.8 times and price-to-book value of 1.8 times.

It said on Wednesday, Aug 10 the recent setback dragged prices towards its 200-day SMA, which it thinks is a good support level.

Traders with higher risk appetite may start to nibble now ahead of further recovery.

'However, bear in mind that the price pattern would be volatile in the near term as MACD is still in the red. RSI too is heading south.

'Prices may swing sideways in the near term, between its 30-day and 200-day SMAs. A push above its 50-day SMA at RM9.30 would instil greater positives into the stock. The following resistance levels are RM9.74 and RM10.40. Only a fall below RM8.60 would trigger our stop,' it said.

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