FLOWS;
BUYS: CIMB, Digi, BAB
SELLS: Gamuda, Mudajaya, PChem
Technical Stock Alert;
MISC (RM4.24) - Price has fallen to almost its decade low
ahead of 1Q results due out tomorrow. RSI has plummeted to 11.5 while the
divergence gap between its SMA 200 of RM6.14 is a whopping RM2.00. For its 1Q
due out tomorrow, numbers are expected to trail consensus number of RM900m full
year considerably as the container shipping division which will effectively
cease in the 1H has been running on poor load factors in the past few months as
clients have shifted their business to other carriers after MISC announced
ceasing operations this year. Tank and Container shipping also continues to face
a difficult market of oversupply with the bright spot. Recent weakness in oil
prices have also help ease Bunker Fuel cost
which peaked around USD750/ mtn to currently USD665/ mtn. Every USD50
fall in bunker rates translates to a corresponding USD10m movement in MISC's
bottom line. Trading now at 0.84x P/Bk, BOW for a recovery in the 2H.
Axiata (RM5.39) - A stellar out performer this year on
the back of better payout from the company. Its price touched a new high of
RM5.44 recently ahead of its ex date on the 28 May for its declared 15sen T.E
dividend. This is an opportune time to take profits on this stock ahead of
results which will reflect headwinds faced especially in the Indian sub
continent. Track for any weakness below the RM5.34 levels as this represents a
violation of the upward support trendline since mid Feb this year. A dip below
this level could see the stock retrace rapidly back to around the RM5.20
levels.
