Tuesday, March 27, 2012

BIMB to follow in Takaful's footsteps?

BIMB's financial performance has improved considerably for FYE31/12/2011. It reported a net profit of RM235 million on a revenue of RM2.584 billion (here). This compared favorably to the results for its 18-month ended 31/12/2010 where its net profit was RM204 million while revenue was RM2.036 billion (here). BIMB Holdings's main subsidiaries are Bank Islam & Takaful Malaysia (which is listed on Bursa Malaysia).

Recently, the share price of Takaful Malaysia rose steadily after breaking above its horizontal resistance at RM2.40. It is now trading at RM2.70. Takaful is reported to be close to selling a stake in its Indonesian unit to a local partner to expand its distribution network in the republic (here). This could be the reason for the ra-rating of the stock, which was the pioneer in the field of Islamic insurance but alas it was overtaken by many newcomers.

I have lined up the chrats of BIMB & Takaful below. You may note the followings:
1) BIMB's immediate resistance is at the horizontal line at RM2.40; and
2) BIMB's most recent rally was in June 2011, which was preceded by a rally in Takaful in April.

Since Takaful has broken above its horizontal resistance at RM2.40, the question to ask is whether BIMB will follow suit & break above its resistance at RM2.40. As such, it is worth to track the price movement in BIMB closely & buy once it break above the RM2.40.

Chart: BIMB & Takaful's daily chart as at March 27, 2012-10.30am (source: Quickcharts)


PWL said...

Thanks for sharing! I have been reading your blog since January, this year. It's very informative...

luckystock2 said...

Hi Alex ,
Can you comment on overall KLSE market outlook recently? It seem like getting weak for me.

This is the day! said...

i've found that, Perdana Petroleum is suddenly fall into downtrend.. any opinion about this stock?

Alex Lu said...

Hi This si the day,

Perdana definitely still in a downtrend, with resistance at RM0.75. Its support is at RM0.55-0.60.

I am not familair with this stock.