KUALA LUMPUR (Oct 11): Hong Leong IB Research said Tek Seng Holdings Bhd’s (TS) severe downside risks are ebbing, implying potential demand amid undemanding FY17 P/E of 8.2x and saidfrom a monthly high of RM1.32, TS share prices tumbled 26.9% to end at 96.5 sen yesterday, mainly driven by knee-jerk selling spree amid negative newsflow of earnings and rating downgrade as well as retrenchment exercise. HLIB Reseach said it believes such discounts have priced in most of the negatives and provided sufficient margin of safety to cushion further sharp share price decline. “We believe severe downside risks are ebbing, implying imminent rebound amid steeply oversold levels, tapering selling pressures and combined with the uptick of the MACD histogram. “If a decisive breakout above RM1.00, then look for a move towards RM1.06-RM1.18 zones. Supports are 89.5 sen-95 sen. Cut loss at 89 sen,” it said.

Source: The Edge Markets October 11, 2016 00:22 UTC