CIMB Research has Technical Sell on Genting

KUALA LUMPUR: CIMB Equities Research has a Technical Sell on GENTING BHD [] at RM8.80, at which it is trading at a FY12 price-to-earnings of 10.4 times and price-to-book value of 1.9 times.

It said on Friday, Sept 23 that Genting's share price broke below its triangle support early this week and this has drawn investors into selling mode on Thursday.

'As the candles deviate further away from its key moving averages, we think the near term trend is firmly down. The following support levels are RM8.50 and RM8.20,' it said.

CIMB Research said the MACD histogram bars have turned negative while RSI has also hooked downward. Beware of the next downleg as it could be sharp.

'Any rebound is an opportunity to take profit. The gap at RM9.23-RM9.28 would likely keep the bulls at bay for now. Put a buy stop at RM9.39, just in case,' it said.

Genting advances in early trade

KUALA LUMPUR: GENTING BHD [] shares advanced in early on Friday, May 13 on the back of its 52%-owned Genting Singapore reporting positive 1Q2011 results.

At 9.10am, Genting was up 18c to RM11.38 with 216,200 shares traded.

Maybank Investment Bank Bhd Research said Genting Singapore's results exceeded expectations (house and street) on above theoretical VIP win rate of 3.8%.

'Genting Singapore should continue to take the lion's share of VIP volume thanks to its generous credit policy,' it said.

The research house maintained its buy recommendation with raised target price of RM12.76 (from RM12.58).