CIMB Research has technical sell on Damansara Realty

KUALA LUMPUR (Nov 23): CIMB Research has a technical sell on Damansara Realty at 73 sen, at which it is trading at a price-to-book value of 1.8 times.

It said on Wednesday Damansara Realty violated its support trend line on Monday. “The pullback also dragged prices below its 30-day SMA. If prices fail to swing back above this support-turned-resistance trend line (now at 80 sen) soon, there is a high possibility that prices may fell towards 68 sen and 62 sen,” it said.

CIMB Research cautioned that the technical landscape is deteriorating. The bearish divergence on the MACD indicator shows that follow through momentum is weakening while RSI is also below the 50pts mark.

“Although some support can be found near its 50-day SMA (now at 69 sen), we think the odds are favouring the bears. Hence, our strategy here is to unload on strength, preferably near the 77 sen to 80 sen resistances,” it said.



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Damansara slides on no asset injection plan

Damansara Realty Bhd, a Malaysian property developer, fell to a one-week low after saying its board hasn’t considered a proposal for the “potential injection” of assets into the company by its parent.

The stock slid 1.8 percent to 80.5 sen at 9:10 a.m. local time in Kuala Lumpur, set for its lowest close since Oct. 20. -- Bloomberg

Mid-day markets continue upward trend

KUALA LUMPUR: Markets continued its uptrend at mid-day, with all regional bourses trading in the positive.

On the global scene, markets held their breaths as the world waits at the edge of its seat for the apex of the European Union (EU) two-leg summit this Wednesday.

Key indices in the United States climbed between 1.5% and 2.3% on Friday, rallying in expectations of a comprehensive plan to counter the EU sovereign debt crisis.

In its market preview for today, HwangDBS Vickers Research said that “we reckon that the benchmark FBM KLCI will probably trade sideways with a slight positive bias. However, we think the benchmark index is unlikely to break through the immediate resistance level of 1,445”.

It added that counters Damansara Realty Bhd and Dayang Enterprise Holdings Bhd may expect movements today following reports that Johor Corp is looking to inject some of its property assets into its subsidiary Damansara Realty while Murphy Sarawak has awarded Dayang a contract extension estimated at RM50mil to RM100mil.

The FBM KLCI at mid-day trade was at 1459.61 points, up 1.44% with 754.23mil shares traded valued at RM648.31mil. 508 counters gained and 143 lost while 226 remained unchanged.

Top gainers were British American Tobacco (M) which gained 42 sen to RM44.86; Hong Leong Financial Group Bhd, which rose 32 sen to RM11.60 and MISC Bhd which climbed 31 sen to RM6.95.

Top losing counters were Stone Master Corporation Bhd which slid 19.5 sen to RM0.30; Warisan TC Holdings Bhd which shed 10 sen to RM2.21 and UMW Holdings Bhd which dipped 10 sen to RM6.70.

On the regional level, Singapore's Straits Times Index was up 1.98% at 2765.99; Hong Kong's Hang Seng Index rose 3.92% to 18731.74; Seoul's Kospi Index gained 2.81% to 1890.04; Shanghai's A share index dipped 0.35% to 2325.30 and Tokyo's Nikkei 225 was 1.83% better at 8837.51.

Nymex crude oil was quoted at USD88.17 per barrel. Spot gold was USD1644.90 per ounce while silver was USD31.49 per ounce.

The ringgit was quoted at 3.1366 to the USD and 4.3486 to the euro.

Damansara Realty gains most in 28 months

Damansara Realty Bhd, a Malaysian builder and property developer, rose to its highest level in more than 28 months after The Edge reported that its parent Johor Corp may transfer property projects to the company.

The stock gained 6.7 percent to 88 sen at 9:16 a.m. local time in Kuala Lumpur trading, set for the highest close since June 16, 2009. -- Bloomberg

HDBSVR: KLCI to see slight positive bias

KUALA LUMPUR: Hwang DBS Vickers Research said while all eyes will be on the European Union summit climax on Wednesday, Oct 26, it reckons that the benchmark FBM KLCI will probably trade sideways with a slight positive bias on Monday.

“However, we think the benchmark index is unlikely to break through the immediate resistance level of 1,445,” it said.

HDBSVR said on Wall Street, Key US indices climbed between 1.5% and 2.3% last Friday, rallying ahead of the EU’s two-leg summit amid expectations that the summit will lead to a comprehensive plan to fight the region’s deepening sovereign debt crisis.

At Bursa Malaysia, among the counters that will likely attract added interest today include: (a) DAMANSARA REALTY BHD [], after the media reported that Johor Corp is looking to inject some of its property assets into the 58%-owned subsidiary; and (b) Dayang, following its announcement that it has been awarded a contract extension from Murphy Sarawak, estimated at RM50 million to RM100 million.