MORNING CALL 19 March 2012
FLOWS;
BUYS: BAB, JCY, Perisai
SELLS: RHBCap, Pchem, Axiata
Technical Stock Alert;
HL BANK (RM11.82) – Price has retraced back down to attractive levels to accumulate, around the RM11.80 levels after touching a recent high of RM12.50. Longer term prospects look good as the SMA 50 is cutting above the SMA200, indicating an ascent back to its high of RM13.25 could be on the cards driven fundamentally by improved cost to income ratio and higher loan/deposit ratio from the EON/HL Bank merger.
Globetronics (RM1.02) – Current uptrend threatening to breach the recent year high of RM1.09 as MACD cutting up with RSI still reasonable at 65. A break out could see it head to an immediate target of RM1.20 on the back of expected improved sales to the US driven by the Smartphone and Tablet market requiring more LEDs.
CENTURY LOG (RM1.79) – Technical indicators, MACD cutting upwards with RSI 67 showing strength that could this leg up to re test the year high of RM2.08 in the short term. The company is venturing into the O&G sector via its 51% JV in a double hull tanker which will be earning accretive by next year.