CIMB Research has technical sell on AFG

KUALA LUMPUR: CIMB Equities Research has a technical sell call on Alliance Financial Group (AFG) at RM3.52 at which it is trading at a FY12 price-to-earnings of 11.4 times and price-to-book value of 1.6 times.

The research house said on Friday, Aug 19 that AFG's recent rebound has returned prices to almost its 62%FR levels but remained below its 30-day SMA at RM3.55.

'The odds remain in favour the bears despite the recent sharp rebound. With both its indicators still in neutral levels, the upside is likely capped here,' it said.

CIMB Research said it would remain sellers of this stock at current levels. As long as prices stay above the recent high of RM3.79, it continues to favour the downside.

'A drop below RM3.29 would likely suggest that the support at RM3.18 is not likely to hold up the impending selling pressure. We expect prices to retest at least the RM3.00 levels, where support is strong,' it said.

CIMB Research has Buy on AFG at RM3.15

KUALA LUMPUR: CIMB Equities Research has a Buy on'' Alliance Financial Group at RM3.15 at which it is trading at a FY 12 price-to-earnings of 9.3 times and price-to-book value of 1.5 times.

It said on Tuesday, June 7 the stock has been trading in a sideways band since hitting a high of RM3.31 back in November last year. It could have formed a triangle pattern and the odds favour a breakout in the coming days if not weeks.

'With both indicators pushing on higher, we believe that a breakout run could begin soon or has already begun. Traders may opt to get in now with a stop place below RM3.09 or RM2.99 depending on one's risk tolerance level.

'A breakout above the triangle resistance at RM3.23 would likely see an increase in buying momentum.

The breakout run could take prices above the RM3.31 high to RM3.43-3.48 next,' it said.