MNRB- the recovery may have started

MNRB's results for 4Q2009 ended 31/3/2009 shows a turnaround after 2 quarters' of losses in 2Q2009 & 3Q2009, where net losses incurred amounted to RM13.3 million & RM13.8 million, respectively. For 4Q2009, MNRB reported a net profit of RM44.1 million- a seven-fold increase over the previous quarter's net profit of RM4.8 million, while turnover inched up from RM280 million to RM284 million. The improvement was attributable to higher underwriting contribution from its reinsurance subsidiary.



Chartwise, MNRB has broken above the accelerated downtrend line as well as the horizontal line at RM3.10. The medium-term downtrend line that stretches back to July 2007 peak of RM5.80 is still intact, with resistance at the RM3.90 level. Before that, MNRB will also face resistance from the horizontal line of RM3.70-80.


Chart: MNRB's weekly chart as at 28/5/2009_3.00pm (Source: Quickcharts)

Based on improved performance (albeit only one quarter) and improving technical outlook, MNRB could be a good stock to accumulate for long-term investing.