Morning Call
5 July 2012
Flows:
BUYS: Maxis, Axiata, PCHem
SELLS:AMBank,Maybank
Technical Stock Alert:
CBIP (RM2.60) - stk has not gained traction on recent
bullishness of plantation sector, having traded sideways at RM2.60lvls with
MACD flattening out and RSI at 57. Recent developments in co: acquisition of
plantation co to further expand its plantation landbank into a sizeable
plantation segment to provide co with further sustainable LT earnings in addition
to its 100% owned Modipalm's contracts wins resulting in ballooning OB of
RM1bn. Trades at attractive PER 7x v manuf counterparts PER 11x and plantation
15x, stk is further supported by co share buyback. Proxy to expanding palm oil
sector and favourable demand outlook for palm oil mill-trading buy for
immediate upside target of RM2.80. (LJN)
MRCB (RM1.81) - one of the worst performing GLCs this
year, falling 32% from its year high to the recent low of RM1.54 on selldown in
construction sector. Price has recovered and seems to be trending higher with
good possibility of breaking out of its downward channel formation with
immediate catalyst being +ve newsflow on
RRI land and EDL toll compensation approval. Recent development on possibly
being frontrunner for prime Jln Bangsar land with potential GDV of RM5bn is
near term catalyst which warrants a Trading Buy call with a target of
RM2.20. (LJN)
