Monday, October 31, 2011

CIMB Research has technical buy on Perdana Petroleum

KUALA LUMPUR (Oct 31): CIMB Equities Research has a technical buy on Perdana Petroleum at 70.5 sen at which it is trading at a FY12 price-to-earnings of 9.0 times and price-to-book value of 0.6 times.

It said on Monday, Perdana Petroleum broke out of its downtrend channel last week.

'We expect the bulls to take charge from here. If prices can continue to hold steady above the resistance-turned-support trend line, there is a good chance that prices may re-rate towards 74.5 sen and 79 sen,' it said.

CIMB Research said the rebound from its 55 sen low also lifted prices above its 30-day and 50- day SMAs. This, together with the rising MACD and RSI indicators, bode well for the stock.

'Any pullback is an opportunity to accumulate. However, always put a stop at between 69.5 sen and 67.5 sen depending on one's risk appetite,' it said.

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