MORNING CALL 22 JUNE
2012
FLOWS;
BUYS: Genting, Gamuda, MAS
SELLS: TNB, Sime, PCHEM
Technical Stock Alert;
IJM (RM5.20) - the
construction giant is finally showing signs of bottoming after touching a low
of RM5.05 mid June. This could have been sparked by its 22.7% held assoc
KEuro's own rebound which could signal that the concession for the RM7bn West
Coast Expressway which has stalled for several months would finally be inked.
This could mean a further additional RM4bn worth of construction works to its
existing outstanding order book of RM4.3bn. A bounce above the RM5.30 would
decisively see a break out of its downward bearish channel established since
late March this year. A failure to hold around the RM5.20 would keep it lock in
to the current trading pattern. Trading Buy for a trend reversal, stop loss at
RM5.10.
Waseong (RM1.85) - this has been an underperforming o&g
stk with MACD languishing at oversold levels but finally starting to cut
upwards. Just announced its 100% subs has successfully acquired 26.9% Penergy
from Petra which is viewed as +ve as co diversifies from its pipelaying
business into brownfield services ie HUCC and maintenance projs and will beef
up its O&G vehicle once the demerger exercise goes through. Co has a
cashpile of RM580m which will be sufficient to finance the purchase of Penergy.
Outstanding OB of RM1.2bn is supported by APLNG, Kebabangan deepwater
pipelaying jobs while eyeing new pipelaying jobs from North Malay Basin and
Petronas' Turkmenistan asset rejuvenation projs. Its MACD has just cut upwards
and RSI still in neutral territory, expect current rebound to only meet
resistance around the RM2 levels. Trading BUY .
(LJN/DN)