MORNING CALL 28 MAY
2012
FLOWS;
BUYS: Digi, CIMB, Airasia
SELLS: Sime, MPHB, TimeCom
Technical Stock Alert;
1) OSK BHD (RM1.70) - Volume activity built up
significantly especially at the latter part of last week ahead of an expected
announcement on the terms of its execution of a conditional share purchase
agreement by RHB Capital. Previous
guidance was between 1.2x-1.8x price/bk for the acquisition, putting OSK
between RM1.80 - RM2.70 based on its book value of RM1.50. Its price has broken
out of its short term down ward channel established since early May and looks
to test its year high of RM1.84. Trading BUY
(PT/DN)
2) IJM (RM5.20) -
Price has been on the decline since Feb when its touch a year high of
RM6.16. There has been a recent recovery in construction related counters and
IJM continues to lag. RSI of 23 and MACD flat we believe a bounce could come on
a rotational play in the sector. Immediate upside of RM5.60, currently trading
at a PE of 15x and 1.3x P/Bk , we rate this a Trading BUY.
