DJ MARKET TALK: Genting Off 2.4%; Rebound May Have Ended -CIMB

DJ MARKET TALK: Genting Off 2.4%; Rebound May Have Ended -CIMB 02/09/2011 12:23

0421 GMT [Dow Jones] Genting Singapore (G13.SG) is down 2.4% at S$1.61, after rising 7.5% over the last three sessions, although yesterday saw the stock end 0.9% lower at S$1.65 after retreating from an intraday high of S$1.75. CIMB says, based on charts, "a rebound (if any) would be a good opportunity to lock in recent gains." It says upside for Genting is likely to be capped by downtrend channel support-turned-resistance at S$1.78-S$1.80. "Prices hit a high of S$1.75 before turning lower yesterday. It is possible that this rebound (off a one-year low of S$1.455 hit Aug. 22) may have ended but we would allow some room for this rebound to continue for a while longer." It adds, "we cannot completely rule out that this rebound still has some legs. Nevertheless, the downside risk is now a lot higher compared to its potential reward." It adds, longer term, the downtrend could take prices back below the S$1.455 low into the S$1.25-S$1.35 range. (matthew.allen@dowjones.com)