CIMB Research has technical Buy on KUB

KUALA LUMPUR: CIMB Equities Research has a technical Buy on KUB Malaysia at 73.5 sen at which it is trading at a price to book value of 1.2 times.

It said on Thursday, July 14 KUB is likely trading at the tail-end of its consolidation triangle pattern.

“Prices also appear to be well supported by its moving averages. At current levels, we think that the risk/reward ratio favours the bulls,” it said.

CIMB Research said both indicators appear to be flat at the moment, supporting the triangle view.

The RSI indicator is likely to push upwards from here after forming a base above the 40-pts mark.

“The stock is a buy now with a stop placed below the recent swing low of RM0.71. Longer term investors should also get out if prices were to fall below RM0.68. As long as the RM0.71 support hold, we expect prices to break upwards with a near term target of RM0.79, followed by RM0.875,” it said.