MORNING CALL
25
MAY 2012
FLOWS;
BUYS: YTL, MRCB, Latexx
SELLS: Maybank, UOA, AMMB
Technical Stock Alert;
SUNWAY (RM2.15) - Price has stabilized for the past week
around current levels with RSI down to 26. The company recently announced the
official award by MRT for package V4 of the Sg Buloh-Kajang MRT line and is
still vying for the station and depot packages on the Klang Valley line. A
rebound back to an immediate resistance of RM2.28 is expected. Trading BUY
MRCB (RM1.61) - MRCB has been one of the worst performing
GLCs this year, falling 32% from its year high to the recent low of RM1.54. The
last few sessions have given us some optimism that its fortunes are about to
change as its price looks to be trending higher and it threatens to break out
of its downward channel formation. This breach should see a rebound to an
immediate target of RM1.78. Near term catalyst could come from awarding of
infrastructure ETP contracts or compensation settlement on its EDL concession
which has yet to begin charging toll on its completed highway. Trading Buy
