KUALA LUMPUR (March 13): CIMB Equities Research has a technical sell on Telekom Malaysia at RM5.10 at which it is trading at a FY13 price-to-earnings of 19.6 times and price-to-book value of 2.6 times.
It said on Tuesday the rally in Telekom could be at its tail end or even ended. Prices tested the key resistance trend line last week and prices reversed soon after.
“With its indicators showing slowing momentum, the chances of higher prices is lower at least in the short term. We expect a setback from here,” it said.
CIMB Research said the stock is a short term sell with a stop placed above RM5.25. Prices are expected to pullback towards the RM4.71-RM4.81 levels where support currently lies.
“The moving averages around RM4.93-RM4.98 may also offer some support. A break below RM4.71 would suggest that the longer term trend has also changed,” it said.
It said on Tuesday the rally in Telekom could be at its tail end or even ended. Prices tested the key resistance trend line last week and prices reversed soon after.
“With its indicators showing slowing momentum, the chances of higher prices is lower at least in the short term. We expect a setback from here,” it said.
CIMB Research said the stock is a short term sell with a stop placed above RM5.25. Prices are expected to pullback towards the RM4.71-RM4.81 levels where support currently lies.
“The moving averages around RM4.93-RM4.98 may also offer some support. A break below RM4.71 would suggest that the longer term trend has also changed,” it said.
