MORNING CALL 21 MAY
2012
FLOWS;
BUYS: Genting, CIMB, MHB, UEMLand
SELLS: DRBHcm, AirAsia, TM
Technical Stock Alert;
FABER (RM1.36) - Price is back down to almost last Sept
low of RM1.25 when the KLCI was only at 1300pts. The sell off can be
attributable to its long delay in finalizing its non medical healthcare
concession extension. In late April its announced its wholly-owned subsidiary,
Faber Medi-Serve, had received an extension letter from the Prime Minister's
Department, which would allow the company to continue operations in the interim
until signing of a new concession agreement with the Ministry of Health. We remain
confident that Faber will secure a new concession and current depressed price
with 14day RSI down to 22 presenting an excellent opportunity to accumulate for
a potential bounce back to the RM1.60 levels. Trading Buy
GAMUDA (RM3.45) - Gamuda's price which has recently been
weak in line with the construction sector is now testing its SMA 200 day
support at RM3.40. Sentiment over the counter was dealt a further blow when the
BT reported that it may have incurred cost overruns on its Electric double tracking
project. This could push the price down below this key support to closer to the
RM3.00-RM3.20 levels. We advise clients looking to accumulate on weakness to
track these levels closely.