MORNING CALL 16 March 2012
FLOWS;
BUYS: CIMB, Supermax, YTL
SELLS:Dialog, IOIC, PCHEM
Sector Call
Hire rates for the biggest oil tankers hauling Middle East crude to Asia rose for an eighth session amid speculation consumers may be seeking extra cargoes in case Iranian supplies are constrained. Charter costs for very large crude carriers plying the benchmark Saudi Arabia-to-Japan route gained 2.4 percent to 65.34 industry-standard Worldscale points. Daily returns for VLCCs on the benchmark route gained 8.6 percent to $32,389, the exchange’s data show. Returns have almost doubled this week.
This situation could further escalate after President Barack Obama and U.K. Prime Minister David Cameron discussed energy supplies yesterday in Washington but gave no indication of releasing strategic stocks as speculated by the market earlier.
The BDIY Index has recovered from a short recent dip after bouncing from a low of 647 to hit a new year high of 866. This could signal a better outlook for the industry on the back of stronger than anticipated global economic recovery.
Stocks tofocus on to trade on this bounce;
MISC (RM5.13); Recent low RM5.01, finding support around the RM5.08. Buy for a technical bounce to RM5.50.
MAYBULK (RM1.76); Recent low RM1.70. MACD hooking up with RSI trending higher at 42. Buy for a technical bounce to RM1.98.
Hubline (RM0.08) Recent low RM0.08, upside target RM0.12.
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