Tuesday, October 25, 2011

CIMB Research has technical buy on Puncak Niaga

KUALA LUMPUR: CIMB Equities Research has a technical buy on Puncak Niaga Holdings at RM1.27, at which it is trading at an FY12 price-to-earnings of 635 times and price-to-book value of 13.2 times.

It said on Tuesday, Oct 25 that Puncak Niaga broke out of its bullish flag pattern on Monday. If prices can continue to hold on above its resistance-turned-support channel, there is a

good chance that prices may re-rate towards RM1.35 and RM1.45 next.

'MACD signal line has returned to the black while RSI has also hooked upward. Hence, we think the bulls have a slight upper hand here. Traders should wait for another white candle before taking position. Be quick to cut loss if the RM1.20 level is breached,' it said.

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