MUHIBBAH (5703) 82 sen BUY

FY09P/E: 3.7x, P/BV: 0.4x

• It is at a junction now. A successful break out above its 30-day SMA at
RM0.81 would result in a short term rally, likely towards the 38% FR at
RM0.87.
• Indicators remain conducive. MACD is still rising while RSI is heading
towards the upper band of the neutral zone.
• On the other hand, if share price fails to hold above its 30-day SMA, selling may unwind soon, with support seen at RM0.735 and RM0.68. Our take is that the stock most likely will see an extension in its earlier rally while selling may only come in later.

Muhibbah Engineering (M) Bhd is an investment holding company which
provides civil, marine, and structural engineering contract works. Through its subsidiaries, the company also manufactures engineering products and distributes and markets construction materials. Muhibbah also repairs and builds ship, produces and leases cranes, trades computer hardware, and invests in properties.