July 13, 2010

QL - QL Resources up, CIMB Research 'Buy' at RM4.16

Stock Name: QL
Company Name: QL RESOURCES BHD
Research House: CIMB

KUALA LUMPUR: QL RESOURCES BHD [] advanced in early trade on Tuesday, July 13 with CIMB Equities Research had a Buy on the stock at RM4.16.

At 9.35am, it was up 10 sen to RM4.26 with 77,900 shares done. The FBM KLCI rose 4.63 points to 1,331.37.

QL Resources broke out of its rising wedge resistance on Monday and the research house said it views this as a positive sign as the breakout should instil greater positiveness into the stock.

'Prices should swing towards RM4.40 and RM4.52 next. The current rising trend will remain intact as long as prices stay above RM3.80,' it said.

CIMB Research said the MACD remains in the positive territory despite recent consolidation while RSI is also above the 50pts mark. In the past, prices usually hit new highs after breaking out of its consolidation zone.

'Risk takers may start to nibble now though we prefer to accumulate near the RM3.92 support level (also close to its 30-day SMA). Only a break below RM3.80 would trigger our stop,' it said.

QL Resources is trading at'' FY11P/E of 13.8 times and P/BV of 3.2 times.


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