MORNING CALL 23 JULY 2012
FLOWS;
BUYS: E&O,
Axiata, JCY
SELLS: MRCB, TNB,
PCHEM
Technical Stock Alert;
DRBHICOM (RM2.73) -
its price has surpassed our trading target of RM2.68 since our initial buy call in April on the back of
expectations of VW acquiring a strategic stake in Proton. However the ongoing
bleeding in Lotus requiring further cash injections by March 2013 could delay
possible negotiations. RSI is showing initial signs of turning down at 68 but
MACD still neutral. We advise client to begin trimming positions with a
possible pullback to around the RM2.54 levels.
ALAM (RM0.53) - The market continues to ignore the
company's improving fundamentals as it trades close to its 52 week low of
RM0.495. RSI remains below neutral levels at 43.8 and MACD flat. Its recent trend of diversifying away from
the saturated AHTs space and improving order book should see the company post
stronger 2H numbers. Immediate upside resistance at RM0.58 and RM0.68.
Accumulate.