KUALA LUMPUR: CIMB Equities Research said it is maintaining a Sell on Genting Malaysia ar RM3.48 at which it is trading at a FY12 price-to-earnings of 13.4 times and price-to-book value of 1.7 times.
It said on Monday, Sept 12 that Genting Malaysia broke below its bearish wedge pattern back in August, and the recent rebound appears to be weak. It is also trading below its key moving averges, which is another negative.
'However, the MACD has just confirmed its positive crossover, which could see prices push a tad higher. This is unlikely to be sustainable as the longer term charts have already turned negative.
'Any rebound towards RM3.58-3.65 is a chance to sell. A break below RM3.35 would likely signal that prices are headed below RM3.32 towards RM3.19 and RM3.00 next. Anything above RM3.68 would trigger our stop,' said CIMB Research.
It said on Monday, Sept 12 that Genting Malaysia broke below its bearish wedge pattern back in August, and the recent rebound appears to be weak. It is also trading below its key moving averges, which is another negative.
'However, the MACD has just confirmed its positive crossover, which could see prices push a tad higher. This is unlikely to be sustainable as the longer term charts have already turned negative.
'Any rebound towards RM3.58-3.65 is a chance to sell. A break below RM3.35 would likely signal that prices are headed below RM3.32 towards RM3.19 and RM3.00 next. Anything above RM3.68 would trigger our stop,' said CIMB Research.
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