– KLCI Index Futures – Momentum was weaker than we initially thought.
– Crude oil futures – Under tremendous selling pressure.
– CPO futures – A prolonged consolidation may take place.
– Faber Group (FAB MK; RM1.52, SELL) – Bearish divergence seen.
– AMMB Holdings (AMM MK; RM5.00, BUY) – Still gripping tightly to its uptrend channel.
– Lion Industries Corporation (LLB MK; RM1.28, SELL) – Correction to last a while longer?
___________________________________________________________________________
Faber Group (FAB MK; RM1.52) – SELL
FY10P/E: 7.4x, P/BV: 1.6x
• Faber continues to trend in an ascending wedge pattern. Although it could still climb a tad higher, we think momentum has weakened and profit taking may accelerate in days to come.
• The 9th Dec high of RM1.60 could be its near-term peak. Unless this level is taken out, we think prices should take a breather and correct lower towards RM1.44 and RM1.35 next. A breakdown from the RM1.48 wedge support would likely confirm that the trend has reversed.
• The bearish divergence on its MACD is a reflection of an easing tone. It histogram bars are losing a bit of momentum while RSI has also retraced from its peak. However, if by any chance the RM1.60 level is penetrated, the next resistance is at RM1.65 and RM1.75.
Faber Group Berhad is an investment holding company which provides management services. Through its subsidiaries, it provides hospital support services, hotel management services, develops hotels, and operates as a hotel proprietor. Faber Group also develops and manages properties.
__________________________________________________________________________
AMMB Holdings (AMM MK; RM5.00) – BUY
FY10P/E: 15.3x, P/BV: 1.7x
• AMMB is still gripping tightly to its uptrend channel. Following the recent consolidation, prices are now treading near the support trend line, which we think is a good entry point. As long as the candles stay above the RM4.90 support trend line, our positive stance remains intact.
• MACD is still skidding but at a slower pace, while has bounced off its lows. The improving technical landscape also supports our buy rating on the stock.
• The stock is likely to climb towards the next resistance at RM5.15 and possibly even RM5.32. Keep stop at below the RM4.79, its 50-day SMA.
AMMB Holdings is an investment holding company. Through its subsidiaries, it provides merchant and commercial banking, retail financing, stock and futures broking, and investment advisory. AMMB also underwrites general insurance, provides asset and unit trust management, and nominees services.
___________________________________________________________________________
Lion Industries Corporation (LLB MK; RM1.28) – SELL
FY10P/E: 4.4x, P/BV: 0.3x
• Since the trend reversed in August, Lion Industries has been making lower lows formation. We think this correction could last a while longer and prefer to take profits on any strong bounce.
• Prices climbed a tad higher after hitting the RM1.21 low but we think sellers at the 30-day SMA (RM1.35) would keep the bulls at bay. Only when the RM1.42 resistance trend line is taken out, we may see a more sustainable run-up.
• MACD remains in the red, suggesting that the bears still have an upper hand. Meanwhile, the RSI continues to dip lower. RM1.21 is its immediate support, followed by RM1.16 next. Unload on strength.
Lion Industries Corporation Berhad is an investment holding company. Through its subsidiaries, the company manufactures and markets steel bars, wire rods, and hot briquetted iron as well as develops and manages properties. Lion Industries also operates timber extraction, pulp, and paper mill as well as manufactures and sells beer and non-alcoholic drinks.
No comments:
Post a Comment