The rationale of accumulating 2143 ECM is based on a strong S&P 500 turnaround. SPX aka S&P500 just broke above the SMA 200 which is technically a bullish achievement. Other than the 30 DOW components, all the major banks and financial issues are grouped into the SPX. ECM being an investment bank will also benefit from the Govt efforts to promote and increase foreign investments in local financial instituitions.
Note the Mid Bollinger Bandwiths support of ECM
ECM is a RM1.00 PAR Value stock >>> not an expensive buy at 68sen or is it? Not when it still is delivering respectable profits. Looking forward, biz will be better with the increasing KLSE daily volume. Analysts are predicting a 10% growth next quarter. ECM is in negotiation with a Singapore financial company to enhance business both sides of the causeway.
FYE 31/1/09Net profits 84.387m
NTA 1.09
EPS 0.62
PE 6.7
DY 0.03
BUY ON DIP
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