Broker's Call - Tue, 05 January 2010: ".
– Eastern & Oriental (EAST MK; RM1.12, BUY) – Breakout of channel would be bullish.
– SP Setia (SPSB MK; RM3.98, BUY) – Buy on weakness.
– Mah Sing Group (MSGB MK; RM1.89, BUY) – More room to the upside.
_____________________________________________________________________

Eastern & Oriental (EAST MK; RM1.12) – BUY
FY10P/E: 22.1x, P/BV: 0.9x

• E&O’s share price has been trading in a downtrend channel since its Sep09 peak, but this trend has reversed after hitting a low of RM0.86. The stock has now surpassed the channel resistance trend line at the RM1.13-1.14 levels, and this breakout is bullish.
• It has also penetrated above the 50-day SMA (RM1.05) and this is another bullish sign. Risk takers may start to nibble but always put a stop at below RM1.05.
• Technical indicators show that a medium-term rally is on the cards. MACD line continues to climb higher and while its RSI is also moving towards the upper band of the neutral zone. Next resistance is at RM1.19-RM1.22 zone.

Eastern and Oriental is an investment holding company. The Company, through its subsidiaries, operates in property development, investment, and management. Eastern & Oriental also provides hotel catering and management.
______________________________________________________________________

SP Setia (SPSB MK; RM3.98) – BUY
FY10P/E: 21.1x, P/BV: 2.0x

• The stock has cut above both its 30-day and 50-day SMAs. Daily chart shows that the stock may rise a tad closer to RM4.10 before marching towards its key resistance at between RM4.25-4.28 levels. A breakout above the stipulated resistance levels could see the stock challenge its Sep09 high (RM4.60).
• MACD line has turned positive while histogram bars show that momentum is picking up. Nevertheless, its RSI is slightly overbought.
• Traders who missed the earlier boat should wait for technical pullback before joining the buying bandwagon. Failure to hold above the 50-day SMA (RM3.75) in the next few weeks does not augur well for the stock.

SP Setia is an investment holding company. Through its subsidiaries, the Company operates as building contractors and develops, invests, and leases properties. SP Setia also manufactures precast concrete, and prefabricates, installs, and sells wood products.
______________________________________________________________________

Mah Sing Group (MSGB MK; RM1.89) – BUY
FY10P/E: 10.9x, P/BV: 1.7x

• Mah Sing Group’s daily price chart shows that the stock is holding above its major support trend line. Further, it is now hovering above the 30-day and 50-day SMA (RM1.80), a bullish sign. Resistance is seen at RM2.00-RM2.04 and RM2.09.
• Improving technical landscape points to better days ahead. MACD is now positive while the RSI signal line is swinging towards the overbought territory.
• However, always place a stop at below RM1.75 as a break below this support trend line would be a major concern for the stock.

Mah Sing Group is an investment holding company. Through its subsidiaries, the Company also manufactures plastic molded products, operates in property development and investment, trades plastic and other related products, and provides construction services.
"