KUALA LUMPUR: CIMB Equities Research has a technical sell on HONG LEONG BANK BHD [] at RM10.18 at which it is trading at a FY12 price-to-earnings of 10.4 times and price-to-book value of 2.1 times.
It said on Monday, Oct 3 that after featuring Hong Leong Bank as a technical sell stock on Sept 23, prices fell to a low of RM9.45 before bouncing back a tad higher to current levels.
'Neverthless, we think that these are likely dead cat bounces, where sustainability is a key concern,' it said.
CIMB Research said although MACD signal line has bounced off lows, it added the bears at its 200-day SMA need to be respected. Hence, any rebound is an opportunity to take profit.
'If prices indeed fail to push above the 200-day SMA, we expect next downleg to drag prices towards RM9.45 and RM8.80. We will only review our call if the candles swing above the RM10.60 level,' it said.
It said on Monday, Oct 3 that after featuring Hong Leong Bank as a technical sell stock on Sept 23, prices fell to a low of RM9.45 before bouncing back a tad higher to current levels.
'Neverthless, we think that these are likely dead cat bounces, where sustainability is a key concern,' it said.
CIMB Research said although MACD signal line has bounced off lows, it added the bears at its 200-day SMA need to be respected. Hence, any rebound is an opportunity to take profit.
'If prices indeed fail to push above the 200-day SMA, we expect next downleg to drag prices towards RM9.45 and RM8.80. We will only review our call if the candles swing above the RM10.60 level,' it said.
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