Monday, September 12, 2011

CIMB Research maintains Sell on Kossan

KUALA LUMPUR: CIMB Equities Research said it is maintaining a Sell on Kossan Rubber Industries at RM2.80 at which it is trading at a FY12 price-to-earnings of 7.8 times and price-to-book value of 1.8 times.

It said on Monday, Sept 12 that prices have fallen below the key support at RM2.80 and the current rebound is testing this support turned resistance level. The trading band of RM2.80-RM2.98 is likely to be a formidable resistance for the bulls.

'MACD is slowly gaining strength but likely is too weak to lift prices higher. Its RSI remains below the 50-pts neutral mark.

'We expect lower prices in the coming weeks as long as the RM2.98 resistance is not breached. Downside support is seen around the RM2.68 and RM2.44-RM2.49 levels,' it said.

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