Tuesday, September 13, 2011

CIMB Research has technical sell on SP Setia

KUALA LUMPUR: CIMB Equities Research has a technical sell on SP Setia at RM3.43 at which it is trading at a FY12 price-to-earnings of 18.1 times and price-to-book value of 1.9 times.

It said on Tuesday, Sept 13 SP Setia violated its downward slopping support channel on Monday.

'We view this negatively as the fall also dragged prices below its August's low,' it said.

CIMB Research said the next downleg is probably going to pull prices lower towards RM3.32 and RM3.15. If these levels are also taken out, the RM3.05-RM3.00 levels are the next key support zone.

'Technical landscape is deteriorating. MACD signal line has staged a negative crossover, pushing its histogram bars into the negative territory. Meanwhile, RSI has also hooked downward,' it said.

The research house said as the 30-day SMA has pierced below the longer term 50-day and 200-day SMAs, it doubted any rebound would be sustainable. Hence, traders should do well taking some profit now. Put a buy stop at RM3.66, just in case.

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