Broker's Call - Fri, 08 January 2010: ".
BUY CALL:-
* Axiata Group (RM3.16) – Building a base before next upswing.
* Ranhill (RM0.895) – Triangle breakout, but keep stop tight.

SELL CALL:-
* Kumpulan Hartanah Selangor (RM0.48) – Strong resistance lies ahead.
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Axiata Group (RM3.16) – BUY
FY10P/E: 15.8x, P/BV: 1.5x

• After months of consolidation, Axiata finally broke out of its triangle’s resistance line this week. A based-building effort could take place over the next few days, and this should provide a platform for further upward swing.
• Technical indicators remain conducive. MACD remains in the black while its RSI is above the 50-neutral mark. However, expect a bit of volatility as RSI is currently at the overbought zone.
• Any pullback towards the resistance-turned-support trend line at RM3.08 is an opportunity to buy. But always place a stop at below RM2.90. Resistance is seen at RM3.27, RM3.52 and RM3.78.

Axiata Group Berhad is a telecommunication company. The Company's main activities are the establishment, maintenance, and provision of telecommunications and related services.
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Ranhill (RANH MK; RM0.895) – BUY
FY10P/E: N/A, P/BV: 0.9x

• This is another case of triangle breakout. As long as prices hold steady above the resistance-turned-support trend line, we believe the uptick remains in force.
• MACD is still rising and has turned positive while its RSI nudges a tad higher. This augurs well for Ranhill as the breakout run should lift the stock towards its next resistance at RM0.935 and RM0.995.
• Always put a stop at the RM0.87 resistance-turned-support trend line. If this level is violated, the bullish technical landscape of Ranhill could be at stake. Further break down of its lower support trend line at RM0.80 would confirm the bearish course.

Ranhill is an investment holding company. Through its subsidiaries, it provides engineering, procurement, construction, and project management services. Ranhill also has operation in power generation, engineering and installation of power distribution and generation facilities, manufactures switchgears and switchboards, and provides facilities management service.
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Kumpulan Hartanah Selangor (KHSB MK; RM0.48) – SELL
FY10P/E: N/A, P/BV: 0.5x

• The stock is still entrenched in a downward channel. Despite numerous attempts, it fails to penetrate above the channel resistance (currently at RM0.505). Another black candle today would likely confirm that buying interest is fading.
• MACD is rising at a slower pace while its RSI has hooked downward. If prices fail to move above RM0.505 soon, selling pressure is likely to accelerate.
• Traders might want to take some profits off the table now and sell the remaining later if the breakout fails to materialise. Immediate support is at RM0.45, followed by RM0.43 next. Resistance is at RM0.52-RM0.53.

Kumpulan Hartanah Selangor Berhad is a property development and investment company. Through its subsidiaries, the Company provides hotel management services, operates club, and invests in property. Kumpulan Hartanah Selangor Berha also has operation in project management.
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