Astro has tested its long-term uptrend line at RM4.60/70

Astro broke its medium-term uptrend line support at RM5.40 on February 27 (see Chart 1 below). Shortly thereafter, it reported a loss of RM71 million on a turnover of RM578 million for QE31/12/2006. The loss was attributable to Astro's accounting for the operating loss of RM100 million in PDTV, its start-up JV in Indonesia. As a result of this loss, Astro's FY2006 net profit of RM160 million is 29.9% lower than last year's net profit. Turnover for FY2006 has however increased by 10.5% from RM2.01 billion to RM2.22 billion.



Chart 1: Astro's daily chart as at April 5

Nevertheless, Astro's share price has just tested its long-term uptrend line at RM4.60/70 on March 29 & re-bounded. I believe Astro's share price could be on the recovery track.


Chart 2: Astro's weekly chart as at April 5

Based on the above, Astro is a BUY if the share price were to drop back marginally.