Thursday, October 6, 2011

CIMB Research has technical sell on Telekom Malaysia

KUALA LUMPUR: CIMB Equities Research has a technical sell call on Telekom Malaysia at RM4.17, at which it is trading at a FY12 price-to-earnings of 19.9 times and price-to-book value of 2.2 times.

It said on Thursday, Oct 6 the fall from Telekom's high of RM4.50 appears to be impulsive. The current rebound has taken prices back up to retest the moving averages.

'The technical landscape remains lethargic. MACD is still in negative territory while its RSI is below the 50-60pts mark.

'Prices could potentially inch higher towards RM4.21-RM4.28 but we would likely doubt the sustainability of the run. Sell into strength with a buy stop placed above RM4.33,' it said.

CIMB Research said prices could ease back below the recent low of RM3.93 towards the key support trend line at RM3.74 once this rebound ends.

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