MORNING CALL 29 February 2012
FLOWS;
BUYS: Sime, UMW, PBBank
SELLS: Perisai, MRCB, JCY
Technical Stock Alert;
CMSB (RM2.56) - Recent price has been driven up on news that the company is implementing a dividend policy of paying out at least 30% of its profits. This has helped the price move closer to its immediate resistance of RM2.60. With RSI now at 82.6 and MACD looking toppish and turning down, it is prudent to sell into strength and buying back around the immediate support of RM2.38.
IGB (RM2.85) - Its share price was in the process of consolidating downwards to its support of RM2.65 before recent news of a possibility in injecting its hospitality assets into a REIT surfaced, sending the price back up to a four year high. Although we remain bullish on the counter to break new highs above RM3.14, technically the stock could resume its consolidation back down to around the support levels before heading higher. Technical sell into with a buy back target below RM2.70.
AFFIN (RM3.07) - Affin-after touching a high of RM3.29, stk has retraced to current RM3.05 lvls and has been consolidating there on thin vol. Cheapest banking play in town trading at mere P:B 0.8x with MACD at oversold lvls(refer tech chart attached)-buy for M&A interest spillover and a catch up in valuations.