MORNING CALL 30 April
2012
FLOWS;
BUYS: Affin, CIMB,
Kencana
SELLS: TNB, Digi,
GentM
Technical Stock Alert;
1) BUMI ARMADA (RM4.06) - sell off due to placement of
293m shares @ RM3.95 looks overdone as fundamentals of the company
remain intact. RSI is now at 25, the lowest level since its listing and MACD
showing a significant divergence. The company's higher than market PE
valuations is justified by its strong earnings visibility and likelyhood of the
group securing a further 2 FPSO contracts this FY. Trading buy, immediate resistance RM4.28
2) UMW (RM7.85) - price is touching its 5 year high
levels on expectations of a turn around in its associate company WSP and better
contribution from its oil rigs. It is however facing headwinds in terms of
vehicles sold particularly by its 28% associate PERODUA due to recent credit
tightening measures guided by the Central Bank. Sell into strength ahead of an
expected correct with RSI above 75 and MACD showing signs of cutting downwards.
Immediate support RM7.60.