FLOWS;
BUYS: Digi, KNM, TNB
SELLS: CIMB, AMMB, DRBHcm, GentM
Technical Stock Alert;
1)AFG (RM3.96) - the
stock gap up yesterday when it was announced that BNM had given DBS the green
light to begin negotiations for Temasek's effective 14.2% stake in the company.
Technically the chart is possibly showing the formation of a triple top if the
price fails to breach the recent high of RM4.05. RSI is on the higher end of 68
and given that conclusion of negotiations may take a while, we are of the
opinion to sell on news with a support at RM3.80.
Stock of the Day - MMHE (RM5.49)
- Finally announced the conclusion of its acquisition of
Sime Engineering's fabrication yard.
-It will also novate the KBB project from Sime Eng valued
at RM1.15bn, helping it replesnish a recent stangnant order
book.
-Additionally it will also allow Sime Eng (for a fee) to complete its ONGC project. This is likely to last to year
end allowing the company to start integrating the yards.
-The enlarge yard space has several advantages over its
rivals such as Kencana, as it is able to handle structures above
40,000 tonnes vs Kencana 20,000 tonnes. This is key especially for deep water
fields.
-Technically the stock has set a strong support at RM5.30
and a bounce above RM5.68 is likely to see it reclaim RM6.00.
BUY on weakness.