FLOWS;
BUYS: CIMB, Supermax, YTL
SELLS: Dialog, IOIC, PCHEM
NAIM (RM1.73) - Suffered one of the steepest sell off
this month falling by over 10%, dragging its RSI momentum indicator to 26. This
has left its price tethering close to its strong support of RM1.68 levels and
offers a good entry level for a play on SCORE in Sarawak. Weakness can be
attributable to its slow order book replenishment this year but management
remains confident of clinching at least RM500m in new contracts. The company
also sits on a health NAT of RM3.14 backed by strategic land banks in Bintulu
and Miri. Trading Buy, with a short term target of RM1.98.
P Metal (RM1.94) - Recent few days has seen a sharp
liquidation by select investors in the stock from RM2.10 to current levels
which also correspond to its SMA 200 day support levels. MACD technical
indicator is showing a wide divergence hence a possibility of a rebound back to
the pre sell down levels as fundamentals continue to improve. The company
recently secured more than half the funding requirements offer its Phase 2B
expansion and with the completion of its new aluminum smelting plant in 3Q this
year, capacity will increase to 360k tns, making it a serious player in the
region. Trading Buy.
