**** Yongnam: Staging a Rebound? Share price 0.365.

Yongnam has cleared its immediate resistance at 0.36 which it has stay below for about a week after the market sell down last week. Seems like it is making a comeback as buyers start to accumulate on dips. Possible to rebound back up to 0.38 level if the 0.36 holds as support. A break above 0.38 can see it go the 0.400 in the short term. Generally still supported above 20 DAY MA line (Green line) at 0.35 currently which signifies that short term upside still intact.  Immediate support at 0.34 then 0.300.

Stop loss below 0.34 for short term trades

 

DBSV – 10^th June 2013

Myanmar

Ride on coattails of Myanmar’s reforms

• Myanmar’s growth is fast and sustainable,
• Abundant opportunities in consumer, tourism, infrastructure and O&G sectors,
• Direct access is limited; invest through foreign companies already in or expanding into Myanmar

 

Reforms have been progressive. Despite skepticisms and multiple challenges, Myanmar’s sweeping reforms have resulted in further easing of sanctions on the country, which in turn is drawing new aids, more visitors and even higher interest to trade and invest in Myanmar. Foreign direct investments (FDIs) have reportedly jumped >40% to US$1.4bn in FY2013 while tourist arrivals have surged 54% to 1m. ADB projected that Myanmar GDP would expand >6% in 2013 and could grow 7-8% p.a. over the decade.
Singapore companies expanding in Myanmar are good gateways. Singapore companies are good proxies to ride on several segments in the country’s current stage of development.

 

Infrastructure:Infrastructure development and planning is rapidly underway. To fast track development, foreigners have been invited to bid for mobile networks, airports, and oil & gas exploration. We like Ezion (BUY, TP: S$3.00) andInterra Resources (NR, TP: S$0.57) as Oil & Gas proxies with operations there. Other potential beneficiaries include Yongnam (BUY, TP: S$0.41)in the development of airports, Tiong Seng (BUY, TP: S$0.33) to set up a pre-cast factory, and SingTel (HOLD, TP: S$3.80) in the bidding for a mobile phone license.