Bursa Malaysia Stock Watch

Broker's Call - Wednesday, 10 February 2010

kltrader
Publish date: Wed, 10 Feb 2010, 06:24 PM
kltrader
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* Malaysia Building Society (RM1.00, SELL) ? Possibility of a break down.
* Genting (RM6.63, SELL) ? Unload on rebound.
* Jaks Resources (RM0.735, BUY) ? Holding firm above resistance-turned-support line.
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Malaysia Building Society (RM1.00) ? SELL
FY10P/E: 12.5x, P/BV: 1.3x

? Looking at the chart, we think the stock is hanging by a thread. Weak momentum dragged prices to the wedge support and there is a possibility that it might fail to hold. If the support trend line gives way, then a deeper correction is likely underway, with the next support seen at RM0.94 and RM0.90. Currently, the stock is also testing its 100-day SMA at RM0.98.
? Technical landscape is still fragile. MACD has staged a negative crossover while its RSI is easing south.
? Unless it can inch past the 3rd February high of RM1.07, broker think the bearish outlook will stay. Traders should lock in some profits on any rebound.

Malaysia Building Society grants loans on the security of freehold and leasehold properties. Through its subsidiaries, the company also operates property development and leases real property.
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Genting (RM6.63) ? SELL
FY10P/E: 15.4x, P/BV: 1.8x

? Genting violated the triangle support recently and it would be a great challenge for it to reclaim the lost territory. Although it is poised for a technical rebound soon, broker see this as opportunities to lock in profits, instead of loading up.
? The double top formation also indicates that the medium term trend is down. As the neckline has been breached, the next support levels are RM6.30 and RM5.95. Meanwhile, gains are likely capped at RM6.85.
? Indicators are weak. MACD has slipped into the negative zone while its RSI is now oversold. Sell into strength is likely to best option here. Even if the RM6.85 level is taken out, there is a cluster of resistances near its SMAs.

Genting is an investment holding company. The company, through its subsidiaries, provides leisure and hospitality, gaming, and entertainment businesses.
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Jaks Resources (RM0.735) ? BUY
FY10P/E: N/A, P/BV: 0.7x

? Jaks has been consolidating for the past few weeks. Yet, it manages to stay firm above the resistance-turned-support channel, suggesting that selling pressure was well absorbed. The based-building could provide a platform for its next upswing.
? MACD histograms declined at a slower pace while its RSI has turned flattish. Once RM0.755 is taken out, the next resistance is at RM0.80, followed by RM0.855 and RM0.875.
? Despite the improving outlook, traders should always keep stop tight at the support trend line (currently at RM0.705). The ?feel good? factor would be tarnished if this level is violated.

Jaks Resources is an investment holding company. The company, through its subsidiaries, provides water supply construction projects such as reservoirs, water reticulation works, and pipe laying.
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