Thursday, November 3, 2011

CIMB Research has technical sell on Public Bank

KUALA LUMPUR (Nov 3): CIMB Equities Research has a technical sell on Public Bank at RM12.70 at which it is trading at a FY12 price-to-earnings of 10.9 times and price-to-book value of 3.2 times.

It said on Thursday the recent rebound from the September lows has taken prices back up to almost its 78%FR levels. The stiff resistance at RM12.80-RM12.85 could potentially keep the bulls at bay.

'Technical landscape is still positive but both indicators are starting to weaken. Its MACD histogram and RSI appear to be flattening out.

'Traders should begin to lock in some profits after prices approaches the said resistance. A break below RM12.48 is likely to take prices towards RM11.80-RM12.05 levels in the short to medium term,' it said.

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