MORNING CALL 12 JUNE 2012
FLOWS;
BUYS: Maybank, PChem, Axiata
SELLS: BJtoto, MISC, Armada
Technical Stock Alert;
MAS (RM1.15) - Its
share price has since staged a mini rebound from 24 May when we highlighted its
depressed price at RM1.03. This recovery can be attributed largely to assurance
from its majority shareholder Khazanah that it is committed to MAS
recapitalization exercise and improving operating profitability with lower fuel
prices as this operating expense item accounts for more than 30% of sales
value. Its macd looks to like continuing to cut upwards with SMA 14 also
trending higher. Formation of a triangle with its low of RM1.02 and a neckline
of RM1.20. A breach above RM1.20 could see an immediate upside target of
RM1.30, which corresponds to a 50% Fibonacci rebound target. BUY call
maintained.
(PT/AL/DN)
GENTING (RM9.58) - Price has reached our immediate
technical downside target of around RM9.50 after breaching below its defined
trading range support of RM10.40. RSI is also down to an oversold level of 27
with MACD flat. An immediate rebound target of RM10.20 is possible as it
remains one of the cheapest gaming conglomerates in the region, trading at a
12.8x current year PE.
