Monday, December 5, 2011

Proton active, up in early trade

KUALA LUMPUR (Dec 5): PROTON HOLDINGS BHD [] shares were actively traded on Monday and rose after the Edge weekly reported that state investment arm Khazanah Nasional Bhd was likely to ask for proposals'' from interested parties for its stake in the carmaker.

At 9.20am, Proton was up 58 sen to RM4.19 with 3.43 million shares traded.

Citing industry sources, the Edge said Khazanah had made overtures and put out feelers to the market, seeking proposals from existing car players on a business plan with regard to Proton.

Khazanah is the largest shareholder in the national car company with a 42.74% stake.

For more, read today's edition of the Edge weekly.

Meanwhile, CIMB Equities Research has a technical buy on Proton at RM3.61 at which it is trading at a FY13 price-to-earnings of 16.4 times and price-to-book value of 0.4 times.

The research house said on Monday Proton broke out of its triangle resistance on Friday.

'The rally also lifted prices above its 200-day SMA. Looking at the chart, we think this uptrend still has legs. The next upswing is likely to push prices towards RM3.86 and RM4.00 next,' it said.

CIMB Research said the technical landscape remains compelling. MACD is hovering in the positive territory while RSI is also above the 50pts mark.

'Risk takers may take some position here. However, always put a stop at between RM3.36-RM3.23 in case this is a bull's trap,' it said.

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