PP 7767/09/2010(025354)

Malaysia Technical Research RHB Research

Institute Sdn Bhd
A member of the
RHB Banking Group
Weekly Trading Idea Company No: 233327 -M

23 August 2010
MARKET DATELINE

Affin Holdings Bargain Buy

Supported By The 10-day And 40-day SMAs…

Technical Research Team Tel : (603) 9280 2584 E-mail: technicalresearch@rhb.com.my

Chart 1: Affin Daily

Statistics:

Stock code 5185

Last Close RM3.05
52wk High RM3.29
52wk Low RM1.834
YTD Change RM0.53
YTD % Chg 21.03%
Trade Lot 100shrs

Shares out 1494.6m

Market Cap RM4558.5m
Float 600.2m

Description:

Affin Holdings is an
investment holding company.
Through its subsidiaries, it A possible medium-term positive sign on the chart of late. Affin has been
provides a variety of financial trading at above the uptrend since Mar 2009. Its uptrend extended further in Mar
services, such as commercial
2010, after the stock surpassed a key resistance level of RM2.70. But, after hitting a
banking, property
development, share nominee, high of RM3.29 in Apr, it started the consolidation phase. However, for the past
and trustee management three months, the stock has been trading near a key resistane level of RM3.08. On
services. It also operates a the chart, the consolidation seems to be narrowing down to closer to the RM3.08
discount house, manages unit
resistance level. Of late, the chart saw a possible medium-term positive sign when
trust, and provides insurance
and money broking services. the 10-day SMA cut above the 40-day SMA near RM3.03.

Charging towards RM3.29 and RM3.45 – RM3.80 resistance region next.

*sources from Bloomberg.
Although the chart registered a “doji” candle on last Friday, indicating indecisiveness
on its near-term direction, both 10-day and 40-day SMAs near RM3.03 are
supporting the stock currently. We like the recent sideways consolidation and
believe the momentum will pick up once buying resumes in sessions ahead. Upon
breaking out of RM3.08, it will charge towards the RM3.29 Apr’s high, before
heading towards RM3.45 – 3.80 resistance zone, in our view.

Technical Recommendation:

♦ Strategy: Bargain buy nearer to the 10-day and 40-day SMAs near RM3.03.

♦ Target: IR = RM3.08 R1 = RM3.45 R2 = RM3.80

♦ Support: IS = RM3.03 S1 = RM2.98 S2 = RM2.70

♦ Exit: Cut loss if the stock loses the recent low of RM2.98.

Please read important disclosures at the end of this report.

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IMPORTANT DISCLOSURES

This report has been prepared by RHB Research Institute Sdn Bhd (RHBRI) and is for private circulation only to clients of RHBRI and RHB Investment Bank Berhad
(previously known as RHB Sakura Merchant Bankers Berhad). It is for distribution only under such circumstances as may be permitted by applicable law. The
opinions and information contained herein are based on generally available data believed to be reliable and are subject to change without notice, and may differ or
be contrary to opinions expressed by other business units within the RHB Group as a result of using different assumptions and criteria. This report is not to be
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may from time to time have an interest in the securities mentioned by this report.

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Technical recommendation framework for stocks and sectors are as follows: -

Technical Recommendation:
Trading Buy = Short-term positive opportunity spotted. It is an aggressive trading recommendation with a book to sellers’ price for short-term technical upside.
Bargain Buy = Short-term positive but technical signals have yet to trigger a rally. Traders can park and queue for their desired entry level within a small range.
Buy on Weakness = Short- to Medium-term positiveness anticipated, but technical readings are still negative. Traders can pick-up the stock for future rally.
Sell on Strength = Short-term momentum still positive, Traders are advice to lock in profit base on current strength.
Take Profit = Short-term target achieved. Traders are advice to exit before the technical readings turn bearish.
Avoid = Risky situation in the short-term and high volatility expected on the share price. Traders’ best strategy is staying away until it stabilises.

Technical Time Frame:

Immediate-term = short time frame within a contra period.
Short-term = moderate time frame within two to three contra periods. For tracking purposes, we refer to 10 trading days.
Medium-term = medium time frame usually refers to two to three weeks period. For tracking purposes, we refer to 20 trading days.

Technical recommendations are generally short-term in nature and may differ from RHBRI’s equity fundamental view and recommendation on the same company.

RHBRI is a participant of the CMDF-Bursa Research Scheme and will receive compensation for the participation. Additional information on recommended
securities, subject to the duties of confidentiality, will be made available upon request.

This report may not be reproduced or redistributed, in whole or in part, without the written permission of RHBRI and RHBRI accepts no liability whatsoever for the
actions of third parties in this respect.

A comprehensive range of market research reports by award-winning economists and analysts are exclusively Page 2 of 2
available for download from www.rhbinvest.com