– Affin Holdings (AHB MK; RM2.50, SELL) – Double top in the making?
– IJM Corporation (IJM MK; RM4.60, SELL) – Gains likely capped at key SMAs.
– Alliance Financial Group (AFG MK; RM2.81, SELL) – Buying interest tapered off.
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Affin Holdings (AHB MK; RM2.50) – SELL
FY10P/E: 10.1x, P/BV: 0.8x
• A strong rally took place shortly after our Buy rating on 13th Nov. This runup lifted Affin to a new 52-week high of RM2.66 before consolidation started to kick in. The uptrend is probably at its tail-end as recent attempts failed to inch past the RM2.66 level. A double top formation is also seen on its daily chart, further reinforcing our “toppish” view.
• Bearish divergence on its RSI indicator shows that follow through momentum is waning. Its MACD histogram bars also lost a bit of traction.
• Until it breaks above RM2.66, we would prefer to stick with the bear’s camp. Unload on strength would likely be the best option for now. RM2.34 is its neckline support, followed by RM2.19 next.
Affin Holdings Berhad is an investment holding company. Through its subsidiaries, the company provides a variety of financial services, such as commercial banking, property management, share nominee, and trustee management services. Affin Holdings also operates a discount house, manages unit trust, and provides insurance and money broking services.
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IJM Corporation (IJM MK; RM4.60) – SELL
FY10P/E: 19.2x, P/BV: 0.9x
• IJM broke below its rising wedge channel recently. Although prices seem to be well supported above RM4.48, sellers at its key SMAs are likely to cap gains. Resistance is seen at RM4.70-RM4.74 and RM4.90 next.
• MACD has turned negative now, suggesting the RM4.48 support is weak. RSI also drifted lower, which does not bode well for a recovery tone. It seems that a deeper correction is likely underway.
• Any rebound towards the RM 30-day SMA should be seen as a chance to sell. If the RM4.48 support fails to hold, it would likely confirm that the rally from Dec08 is over.
IJM Corporation Berhad is an investment holding company that provides construction services. The company, through its subsidiaries, operates in property development, provides quarrying services, manufactures and sells premix products, cultivates oil palm, and provides education services.
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Alliance Financial Group (AFG MK; RM2.81) – SELL
FY10P/E: 16.2x, P/BV: 1.6x
• The breakout from its sideways trend is overall positive but we may see some bouts of profit taking settling in soon. Buying interest has tapered off after hitting a recent high of RM2.95.
• MACD signal line is poised for a negative crossover while its RSI also dwindled. If the RM2.74 minor support gives way, next downside target is at RM2.60 and RM2.50.
• The stock is less appealing at current levels. In fact, selling on strength is preferred due to its deteriorating technical landscape. For investors who wish to buy, values should emerge near its key SMAs.
Alliance Financial Group Berhad is an investment holding company. Through its subsidiaries, the company has operation in commercial and merchant banking, provides financing and nominee services, and invests in property. Alliance Financial also operates and manages a golf resort, manages unit trusts, and provides trustee services.
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