MORNING CALL 16 MAY 2012
FLOWS;
BUYS: Axiata, PBBank, Maxis
SELLS: YTLC, Benalec, Salcon
Technical Stock Alert;
MAYBANK (RM8.63) - Retesting recent lows which correspond
to its SAM 200 day levels as MACD continues to cut downwards. Concerns over the
local financial sector's exposure to European bonds is also once again making
its rounds. MBB has to further contend with BOI's plans to impose caps on
single shareholders in commercial banks of which they have a 97.5% stake in
BII. Immediate support seen at RM8.20 with a possibility of slipping lower to
its stronger support level of RM7.60. Trim
KPJ (RM5.60) - Valuations have raced ahead to the mid
20's on the back of the expected high valuation ascribed to Khazanah's
Integrated Healthcare Holdings listing later this year. MACD technical
indicator has cut down convincingly after the stock touched a high of RM5.93
and we expect immediate support around the RM5.30 levels. Price could continue
to retrace back to a more reasonable PE valuation of 18x or RM4.70 vs. current market PE of 14.3x. Trim
