MORNING CALL 8 March 2012
FLOWS;
BUYS: Axiata, PBBank, Maxis
SELLS: YTLC, Benalec, Salcon
Technical Stock Alert;
MMHE (RM5.33) - Setting a small double bottom at RM5.29 with RSI undemanding at 37.9 and neutral MACD. Immediate potential upside of RM5.60. Currently waiting for completion of Sime yard expected in 2Q 2012. This could allow it to bid more aggressively for new contracts as existing yard space is already 90% utilized.
Dijaya Corp (RM1.50) - Experienced a sharp 20% sell off after recent suspension from a high of RM1.72. Short term supported seen at RM1.50 with a stronger level at RM1.39. Latest announcement of injection of property assets into the company catapults the Dijaya into the big league with a potential GDV of RM36.6bn.
Stock of the Day
DIALOG (RM2.38) - After touching recent intraday hi of RM2.66 stk has retraced and been largely been consolidating at 2.42 lvls. Yesterday's selling saw stk break below RM2.40 to new recent low. MACD has been at oversold lvls.
- This weakness provides opportunity to collect on back foot with stronger support at 2.33 i.e. 200day SMA level.
- Expect increased news flow into o&g sector especially in marginal oilfields to provide necessary interest in stk. Recent tie up with Atlas Services to venture upstream will enhance co's chances of getting marginal oilfield RSCs and other EOR projs. Imminent 4-6 RSCs to be awarded from Petronas this yr.
- Co to also see improved earnings from its tank terminal expansion in Pengerang - Buy