Wednesday, April 27, 2011

Daily POS Malaysia Chart Shows A Positive Close Today Is Required For A Bullish Reversal Trend

Stock to watch – POS (RM3.25-Accumulate)

POS– Likely to bottom up soon

POS Malaysia price took a heavy beating to as low as RM3.23 (from 52-week high of RM3.74) on Monday following Khazanah’s divestmentof its 32.2% stake in Pos to DRBHicom for RM3.60/share last Friday. The fall could be attributable to investors’ disappointment that no general offer (GO) for the remaining shares in POS (below the 33% threshold), as well as awaiting further detailed business plans to unlock and liberalize the 16 plots of lands.

Our institutional research remain positive on POS with a target price of RM3.80/share on the back of: (1) The pending relaxation of the 16 plots of identified land, which will further enhance Pos Malaysia’s value over the longer term; and (2) The synergistic effect between Pos Malaysia and DRB-Hicom.

POS Malaysia is also likely to be supported by FY10’s netcash/share of RM0.66 and 17.5sen dividend/share (ex-date: 10 May).

Based on the hourly chart, there is a high possibility that price may swing towards the RM3.29-3.39 overhead resistance zones, due to positive convergence signals of the trend and momentum indicators. Risk takers may start to nibble now to ride the
technical rebound wave. Cut loss below RM3.15.

Further rebound targets are RM3.46 (38.2% FR), RM3.49 (mid Bollinger band – daily chart) and RM3.57 (23.6% FR). Immediate support levels are RM3.15-3.20.

Daily POS Malaysia Chart Shows A Positive Close Today Is Required For A Bullish Reversal Trend.
POS 27-04-2011


Source: HLeBroking

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