Thursday, August 25, 2011

CIMB Research has Technical Sell on Public Bank

KUALA LUMPUR: CIMB Equities Research has a Technical Sell on PUBLIC BANK BHD [] at RM13.06 at which it is trading at a FY12 price-to-earnings of 11.2 times and price-to-book value of 3.3 times.

The research house said on Thursday, Aug 25 that it appears that the recent rebound has taken prices back up to almost its 62% FR levels.

'We see stiff resistance around these levels and coupled with the large gap overhead, we believe that the upside from here is limited,' it said.

CIMB Research said the technical landscape is still weak despite its MACD flattening out. RSI remained below the 50-pts neutral mark.

'Traders should go short here with a stop placed above RM13.50. We expect prices to take out the recent low RM12.52 in the short term. A break below this low is likely to take prices towards RM11.80-RM12.05 levels in the medium term,' it said.

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