Advertisement

Friday, February 21, 2014

MNRB- has a bullish breakout

Technical Outlook

MNRB broke above its horizontal resistance at RM3.85 yesterday. Today, it pulled away and broke above the psychological level of RM4.00. With these double breakout, MNRB is poised to march to the 2007 high of RM5.70.


Chart 1: MNRB's weekly chart as at Feb 21, 2014_12.30pm (Source: Interachart.com)

Recent Results

I will comment more on the financial performance once the results for QE31/12/2013 is out in the next few days. Meanwhile, you can take a look at its past financial results below.


Table: MNRB's last 10 quarterly results


Chart 2: MNRB's last 27 quarterly results

Conclusion

Based on technical breakout, MNRB may be a trading BUY.

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, MNRB.

2 comments:

Mat Cendana said...

It needs to stay above 4.00 though. If not, the previous upsurge will be proven as a false breakout. Actually I see this one as promising. It looks to be finding a footing for the next push upwards. If this doesn't come, it might be better to cut losses for the time being.

Alex Lu said...

Hi Mat Cendana,

You could be right about MNRB- another false breakout...

The market may be over-reacting to its low NP of RM14 million which was mainly due to the provision for Typhoon Fitow losses in Fujian Province in Southeast China (provided by the reinsurance subsidiary) and the increase in actuarial reserves in the family retakaful business.

It could drop back to the 40-week EMA line at RM3.50-3.60.