MORNING CALL 15 JUNE
2012
FLOWS;
BUYS: Maybank, PChem, Axiata
SELLS: BJtoto, MRCB, DRBHcm
Technical Stock Alert;
MISC (RM3.91) - Stock continues to trade at the low end
of its range, bouncing from RM3.85 to RM4.20 in the past month. However there
is some positive divergence emerging in its technical indicators as its RSI has
moved up from a low of 10 to currently 31 and the MACD also trending higher.
Valuations currently are comparable with regional peers as it trades at 0.88x
P/Bk vs China Cosco 0.88x and NOL 0.91x. With main local GLCs holding 80% of
the company, there could be some window dressing activity ahead of 1H closing
at end June. Trading Buy with an immediate upside of RM4.30. (PT/LJL/LJN/DN)
SUPERMAX (RM1.84) - The strong set of quarterly numbers
recorded by market leader Top Glove could trigger a rerating for the sector on
the back of lower latex prices and strengthening USD/RM rate. Supermax current
year PE is significantly lower than Top Glove (17x) vs Supermax (10x). Its
earnings growth this year is underpinned by its expansion into surgical and
nitrile gloves division. A breach above the RM2.00 could see its price move
closer to its stronger resistance of RM2.20.
BUY