Monday, August 22, 2011

CIMB Research has technical Sell on Gamuda

KUALA LUMPUR: CIMB Equities Research has a technical Sell call on GAMUDA BHD [] at RM3.25 at which it is trading at a FY12 price-to-earnings of 12 times and price-to-book value of 1.8 times.

It said on Monday, Aug 22 that Gamuda broke below its triangle support few weeks ago. The pullback also dragged the candles below all its key moving averages.

'Hence, we think there is still room to the downside,' it said.

CIMB Research said although intermittent rebound could take place, possibly filling the breakdown gap at RM3.46-3.54, sustainability remains a key concern here. Therefore, traders should do well selling into strength.

'The next downleg should push prices lower towards RM3.12 and RM2.93. A break below the previous swing low would confirm this downtrend,' it said.

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