Morning Calls | 26 March 2012

MORNING CALL                                                                       26 March 2012

FLOWS;

BUYS: UEMLand, Sime, KEuro

SELLS: MAS, Genting, Maybank

Technical Stock Alert;

MPI (RM3.07) – A recovery in utilization rates has seen renewed interest back in the sector. MACD has cut upwards with a breach above the RM3.10 level indicating a short term target of RM3.20. A push further up could see it test its neckline of RM3.40. BUY

(RL/AL)

FABER (RM1.68) – Testing crucial support at current levels. A break down below this support level could see the stock form a double top and slide towards a downside target of RM1.40. The trigger that could see such a scenario could be the loss of its15 year hospital support services concession which expired last year and was extended temporarily for 6 months to April 2012 pending a decision. This service contributes on average an EBITA of RM70m-RM80m.

(DN/AL)

WASEONG (RM2.05) – Small double bottom formed at RM2.00 with MACD and RSI trending up. The company has been linked to a pipe coating contract for Petronas in Turkmenistan in a recent weekly financial publication. They are also lined up to participate in pipe coating contracts for Petronas in deep water fields of the North Malay Basin and Malikai. Significant order book replenishment could see the stock test the immediate resistance level of RM2.20. BUY

(PT/DN)