Bursa Malaysia Stock Watch

Broker's Call - Wed, 27 January 2010

kltrader
Publish date: Wed, 27 Jan 2010, 10:47 PM
kltrader
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* LBS Bina Group (RM0.74, SELL) ? Hanging by a thread.
* Top Glove Corporation (RM11.30, SELL) ? Broke below key support.
* AirAsia (RM1.37, BUY) ? Banking on a breakout.
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LBS Bina Group (RM0.74) ? SELL
FY10P/E: N/A, P/BV: 0.7x

? The stock is hanging by a thread as its candles are just sitting above its support trend line. Although there is a slim chance that it could bounce back towards its recent high of RM0.81, sustainability is a key concern here.
? Its indicators are showing some signs of exhaustion. MACD is losing pace fast while RSI has also retraced from its peak.
? Risk adverse investors may take some profits off the table now instead of waiting for a break below the RM0.725 support trend line. Once this level is violated, selling could be sharp and likely to push its prices towards RM0.705 and RM0.63 next.

LBS Bina Group is a management and investment holding company. The company, through its subsidiaries, operates property development and investment. LBS also provides project management and contractor services for property development, turf and landscaping contracting, insurance services, sells motor vehicles, and trades building materials.
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Top Glove Corporation (RM11.30) ? SELL

FY10P/E: 14.4x, P/BV: 3.8x

? Top Glove broke below its support trend line yesterday. This is a bearish sign as it would likely confirm that the RM12.12 level was its intermediate high. There is a minor support at RM11.16. Failing to hold above this level could result in more downward drift, likely towards RM10.74 and RM10.54.
? MACD is poised for a negative crossover while RSI has also fallen below the overbought territory.
? Traders may want to lock in some profits on rebound, preferably near the RM11.62-RM12.00 resistances. If prices fail to move above the supportturned-resistance trend line over the next few days, broker will prefer to stick with the bears? camp.

Top Glove Corporation manufactures a wide range of latex gloves. The company's products include latex examination powdered, latex examination powderfree, nitrile examination gloves,soft nitrile examination gloves, vinyl examination gloves, surgical gloves, and other related products.
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AirAsia (RM1.37) ? BUY
FY10P/E: 6.6x, P/BV: 1.5x

? AirAsia is gyrating in a triangle pattern. Recent selling was well-absorbed and we are banking on a potential breakout run. As long as the support trend line (currently at RM1.28) is not violated, we think it may swing higher again, likely towards its recent high of RM1.45, and possibly even RM1.57 next.
? MACD indicator is still falling but at a slower pace. In addition, its RSI has begun to hook upward, suggesting that selling pressures are slowly tapering off.
? Despite our bullish stance on the stock, it is critical to put a stop at below RM1.28. A break below this level could entice greater selling pressure and dragged prices towards RM1.22, RM1.15 and RM1.10 next.

AirAsia Berhad provides low-cost air carrier service. The company provides services on short-haul, point-to-point domestic and international routes. AirAsia operates from hubs in Malaysia, Thailand and Indonesia.

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