CIMB Research has technical Buy on KUB

KUALA LUMPUR: CIMB Equities Research has a technical Buy on KUB MALAYSIA BHD [] at 75.5 sen, at which it is trading at a price-to-book value of 1.2 times.

It said on Tuesday, Aug 2 that 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.

It added 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 71 sen. Longer-term investors should also get out if prices were to fall below 68 sen.

“As long as the 71 sen support hold, we expect prices to break upwards with a near term target of 79 sen, followed by 87.5 sen,” it said.