Monday, September 12, 2011

CIMB Research maintains Sell on WCT

KUALA LUMPUR: CIMB Equities Research said it is maintaining a Sell on WCT at RM2.54 at which it is trading at a FY12 price-to-earnings of 12.7 times and price-to-book value of 1.5 times.

It said on Monday, Sept 12 that it would likely to remain sellers for WCT as it sees no signs of a turnaround yet. The recent rebound has been weak.

'Its indicators are also looking weary despite falling from a high of RM3.18 in July. The MACD could be doing a rollover, which likely to indicate further selling ahead,' it said.

CIMB Research said traders should use any rebound towards the RM2.70-2.72 gap to sell into strength. Prices could potentially weaken towards RM2.35 next once the RM2.50 support gives way.

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