FLOWS;
BUYS: SPSetia, Pchem, MRCB, AFG
SELLS: TM, Gamuda, Axiata
Technical Stock Alert;
MAS (RM1.58) - Retraced from its recent high of RM1.74 after bouncing off a low RM1.30 in December. We don't expect the price to breach below its SMA 200 levels of RM1.54 and view any weakness around these levels as an excellent opportunity to accumulate for an immediate upside of RM1.88. Transformation after the share swap with AirAsia continues gain traction with the recent appointment of ex AirAsia management personel as the new COO of MAS.
KURASIA (RM0.60) - Renewed interest in the counter in the past few days is threatening to push it out of its consolidation pattern between RM0.58-RM0.60. A breach above the RM0.61 levels could see it hit a target of RM0.72. It is currently in a process to dispose of Kurnia Insurans, the general insurance arm of Kurnia to AMG Insurance.
Stock of the Day
Benalec - (RM1.38)
- Charts indicate a small double bottom at RM1.30 with chances of breaching above the RM1.40 levels.
- Johor remains topical at the moment as the Government continues to spend a significant amount of its budget in the state which augurs well for Benalec as they are currently in the process of reclaiming 3485 acres in Tg Piai and 1760 acres in Pengerang over the course of 10-15 years.
- Both these locations have been earmarked for the development of Johor into a oil hub.
- Trading at undemanding PE of 10x with a potential of 50% earnings growth in the following year. BUY