Thursday, September 29, 2011

CIMB Research has technical sell on Axiata

KUALA LUMPUR: CIMB Equities Research has a technical sell call on'' Axiata Group Bhd at RM4.59 at which it is trading at a FY12 price-to-earnings of 13.5 times and price-to-book value of 2.0 times.

It said on Thursday, Sept 29 that Axiata has remained below its 200-day SMA key support after prices tumbled in August. The fall is in line with our earlier call (Sept 5 issue) and the current rebound could soon turn lower from here.

CIMB Research said the MACD has stayed negative while its RSI is below its 50-60pts mark. Both indicators suggest that the technical landscape still tips the scale to the downside.

'The stock remains a sell now with a lower buy stop above RM4.84 from above RM5.05. We expect prices to test the August low of RM4.38. The next support is at RM4.20-RM4.05. After that, there is no strong support until RM3.50,' it said.

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