Morning Call 21 March 2012
Flows:
BUY: CIMB, Tenaga, Maybank, Petgas
SELL: Airasia, PChem, MISC, Digi
Technical Stk Alert:
TMC Life (RM0.325) – after touching 0.385 high, stk has retraced 15% and has been consolidating at 0.325 lvls. MACD is showing slight hints of cutting up after cutting down since mid Feb, RSI 38. May see spillover interest into stk as mkt leader KPJ has been climbing with vol in past wk. Accum with possibility of breaching above this trading range with a target of RM0.42.
AZRB (RM0.90) – trading opportunity reemerge as price has retraced back from a recent high of RM1.08 down to around 90sen level(50day SMA)which represents its fair value fundamental support levels. Technically attractive as RSI 47 with MACD gap widening further. Yesterday’s award of RM8.2bn MRT underground job earlier than expected indicates possible further award of other parcels of MRT jobs sooner than expected. AZRB was earlier rumoured to be a beneficiary for further awards. Co’s OB stands at comfortable RM2bn as it starts work this mth on the viaduct for its 1st award of MRT proj. Trading buy
Globetronics (RM1.06) – stk has recently hit a high of RM1.10 as it broke out above its RM1.05 resisitance lvl on heavier vol. Technically, MACD has just cut upwards with RSI at 68. Recent breakout in px and vol could be due to co launching new margin enhancing products this year making co an excellent proxy to the growing smart-phone & tablet markets. Trades at PER10x - Accum as co has a strong clientele base, favorable product segment that it’s in & above average dividend yields of 10% ( payout ratio averaged 87% over the last 3 years).
