KUALA LUMPUR: CIMB Retail Research has advised investors to sell Multi-Purpose Holdings Bhd (MPHB) into strength. At RM2.18, it is trading at a FY11 price-to-earnings of 14.5 times and price-to-book value of 1.1 times.
It said on Tuesday, Aug 17 the countertrend rebound stopped near its 61.8% FR level, suggesting that there is a strong resistance here. The consolidation will likely persist a while longer and there is a risk of a potential pullback towards the RM2.04 and RM1.90 support levels.
?MACD is poised for a negative crossover while its RSI is also dwindling. These do not bode well for a strong recovery.
?Traders should do well selling into strength. We will stick with the bears? camp as long as prices remain below its recent high of RM2.26,? it said.