Thursday, May 10, 2012

Morning Call | 9 May 2012

MORNING CALL                                      9 MAY 2012

FLOWS;

BUYS: Sime, UMW, PBBank

SELLS: Perisai, MRCB, JCY

Technical Stock Alert;
DIALOG (RM2.24) - Current consolidation phase between RM2.16-RM2.26 looks likely to be broken to the down side with its SMA 50 day trending down to cut below its SMA 200 day.  This move could signal a potential downside of RM2.12.

The risk to the downside target could be an earlier than expected announcement for an end user to its Pengerang Phase 2 Tank Terminal project.

SIME (RM9.78) - Current weakness in commodity prices have not spare CPO which is down 9% off its high of RM3655/mt. Sime's technical indicators have begun to show a negative divergence with its MACD and RSI moving lower. We expect its price to pullback to an immediate support of RM9.48 and possibly RM8.80.

Recently its JV company Malaysia-SinoHydro Corp submitted disputed amount claims of RM670m for civil works on the Bakun Dam to Sarawak Hidro.