MORNING CALL 19 JULY
2012
FLOWS;
BUYS: Genting, Gamuda, SPSetia
SELLS: TNB, Sime, PCHEM
Technical Stock Alert;
AXIATA (RM6.00) - Closed at it low end of the day range
yesterday and RSI is meeting resistance at 80, currently back down to 70 still
over bought. Price rallied over 11% in the past month on talks that there could
be some capital management announcement which now does not seem forth coming.
MACD divergence widening significantly indicating an imminent pull back. Our
short term downside target of RM5.76. Trading sell
POS (RM2.88) - Stock experienced a jump start yesterday
after failing to breach and maintain above the RM2.90 levels at its last attempt.
MACD has just cut up and RSI of 64 not in an overbought situation. The market
could be rerating the company on the back of its recent announcement of
entering the micro credit market with its strategic partnership agreement to
offer Islamic pawn broking to the public at selected POS Malaysia outlets
nationwide. A decisive breach above RM2.90 could see it track to a short term
target of RM3.20. BUY