Tuesday, September 27, 2011

OSK Research: UEM Land's next strong support at 97c to RM1.07

KUALA LUMPUR: OSK Research said at 25.0 times consensus FY11 price-to-earnings, UEM Land is definitely one of the few bigger market-cap stocks with such high valuation.

It said on Tuesday, Sept 27 that in the current nervous equity market, its high valuation may attract further selling pressure on the stock.

OSK Research said probably due to the same reason, its share price came down by 8% with huge volume on Monday.

It added that an obvious downtrend has already been established since it has violated the foundation of the 'Descending Triangle' and its share price is expected to continue trending lower until that downtrend line is violated.

'Shall the downtrend line continue to extend lower, UEM Land's share price might eventually retrace much lower as the next strong support can only be found at the 97 sen to RM1.07 area,' it said.

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