MORNING CALL 6 JUNE
2012
FLOWS;
BUYS: CIMB, Gamuda, IOIC
SELLS: IJM, SPSetia, TM
Technical Stock Alert;
1) DIALOG (RM2.32)
- Its price has rebounded strongly in the past month after threatening to break
down when it slumped to a low of RM2.16. The renewed optimism could be on the
back of an earlier than expected announcement for an end user to its Pengerang
Phase 2 Tank Terminal project. With the current run up, RSI is now close to the
70 levels with MACD in overbought territory. We recommend a sell into strength
especially towards the strong resistance levels of RM2.42
2) MMC (RM2.60) -
Price is now trading around its year low of RM2.54 despite unlocking
value from the listing of its subsidiary Gas Malaysia soon. There are more
M&As likely in the pipeline as they are also the lead contender to
privatize KTMB hence may lead to further divestment of non core assets. RSI has
turned neutral with MACD looking to cut upwards, we recommend a trading BUY
with first resistance around the RM2.76 levels and RM2.90 after.