CIMB Research has technical sell on AFG

KUALA LUMPUR: CIMB Equities Research has a technical sell call on Alliance Financial Group (AFG) at RM3.52 at which it is trading at a FY12 price-to-earnings of 11.4 times and price-to-book value of 1.6 times.

The research house said on Friday, Aug 19 that AFG’s recent rebound has returned prices to almost its 62%FR levels but remained below its 30-day SMA at RM3.55.

“The odds remain in favour the bears despite the recent sharp rebound. With both its indicators still in neutral levels, the upside is likely capped here,” it said.

CIMB Research said it would remain sellers of this stock at current levels. As long as prices stay above the recent high of RM3.79, it continues to favour the downside.

“A drop below RM3.29 would likely suggest that the support at RM3.18 is not likely to hold up the impending selling pressure. We expect prices to retest at least the RM3.00 levels, where support is strong,” it said.