Monday, December 5, 2011

CIMB Research has technical sell on Mah Sing at RM1.88

KUALA LUMPUR (Dec 5): CIMB Equities Research has a technical sell on Mah Sing Group at RM1.88 at which it is trading at a FY13 price-to-earnings of 5.4 times and price-to-book value of 1.5 times.

The research house said on Monday the rebound from its August's low hit a snag near the 61.8% FR level at RM2.15.

'We believe this is a level of significance and traders should continue to use any rebound to unload on strength. There is also a cluster of resistances at RM1.92-RM1.97,' it said.

CIMB Research said the technical landscape remains lethargic, which does not bode well for the stock. MACD signal line is about to fall into the negative territory while RSI has also hooked downward.

The research house said traders with lower risk appetite may wait for prices to fall below RM1.84 before joining the seller's camp. The following support levels are RM1.74 and RM1.64.


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