Morning call | 6 April 2012

MORNING CALL                                       6 April 2012

FLOWS;

BUYS:  E&O, Axiata, JCY

SELLS:  MRCB, TNB, PCHEM

Technical Stock Alert;

 1) MASTERSKILL (RM1.15) - short term MACD indicators showing signs of cutting upwards with gradual recent price recovery off its low of RM1.05. Immediate upside target RM1.28. Major shareholder Edmund Santhara recently acquired an additional 7m shrs @ RM1.10 to increase his exposure to 23.81%. Interest in this sector could be ignited by news of Navis acquiring a stake in Segi and Ekuinas buying a 90% stake in education group Cosmopoint S/B. Trading Buy with a stop loss RM1.10.

2)  IJM (RM5.60) - trading in a down cycle since touching a high of RM6.16 earlier this year. The price has since stabilized around the RM5.60 levels with RSI lingering at oversold levels of 32.5. An immediate upside target of RM5.80.RM6.00 on the possible rerating catalyst from the official signing of the West Coast Expressway concession which they hold a 38.2% stake and likely to get the lion's share of the construction works valued at RM7bn. BUY