Thursday, October 27, 2011

CIMB Research has technical buy on MPHB

KUALA LUMPUR: CIMB Equities Research has a technical Buy on MULTI-PURPOSE HOLDINGS BHD [] at RM2.55 a share at which it is trading at a price-to-book value of 1.3 times.

It said on Thursday, Oct 27 that MPHB's share price broke out of its resistance trend line on Tuesday. Prices also tried to take out its 50-day SMA along the way.

'We think the stock is ripe for a stronger rebound. If we are right, prices should edge closer towards RM2.70 and RM2.87.

'Technical landscape remains conducive. MACD signal line is about to turn positive while RSI is above the 50pts mark,' it said.

CIMB Research said traders with higher risk appetite may start to nibble now. However, it is important to keep stop tight at below RM2.50-RM2.44.


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