Bursa has just surpassed its strong resistance of RM6.20

With the recent announcement of a better set of results for QE30/9/2006 & a 28-sen dividend, Bursa has been receiving steady buying interest. This morning, the share price has rallied strongly & surpassed the strong horizontal resistance of RM6.20. With the ex-dividend date fixed on Nov 15 (i.e. 5 trading days away), I believe that the share price is likely to inch up toward the RM6.70/75 level. Bursa may be a good trading stock if the share price were to weaken to the RM6.25/30 level again. See the daily chart below.


















In QE30/9/2006, Bursa's net profit has increased 28.1% y-o-y to RM25.1 mil on the back of a 6.0%-increase in its turnover to RM68.1 mil. EPS for the 9-month ending 30/9/2006 is 15.4 sen, thereby giving an annualized EPS of 20.5 sen. Based on this EPS & currrent trading price of RM6.30, Bursa is trading at a PE of 30.7 times. That's a fairly high PE multiple, by any mean.