MORNING CALL 2 March 2012
FLOWS;
BUYS: CIMB, DRBHcm, MAS
SELLS: Axiata, Maxis, Mulpha
Technical Stock Alert;
SIME (RM9.93) - Price broken out of previous resistance of RM10.00 on the back of news that the company maybe preparing to list some of its business divisions separately in 2013. Immediate target RM10.50 (filling earlier gap) with a downside support of RM9.70
KNM (RM0.94) - Volume has thinned out in the past few days after recent sell off in reaction to another set of poor quarterly results due to provisions. This could indicate a short term support around the RM0.95 is set with a possible technical bounce back to RM1.10 levels. However any break down below RM0.92 should signal a stop loss level with downside risk of RM0.83.
KNM (RM0.94) - Volume has thinned out in the past few days after recent sell off in reaction to another set of poor quarterly results due to provisions. This could indicate a short term support around the RM0.95 is set with a possible technical bounce back to RM1.10 levels. However any break down below RM0.92 should signal a stop loss level with downside risk of RM0.83.
Stock of the Day
MUDAJAYA (RM 2.79)
- Retracement from recent high of RM3.07 to a low of RM2.79.
- Offers a buying opportunity as it currently trades at only 6.5xPE, cheapest among the mid cap construction names that are vying for LRT and MRT jobs.
- Current orderbook of RM3.6bn with reasonable dividend yield of 2.8% and in a net cash of 27sen/share
