KUALA LUMPUR:'' After chalking up 16.5 points or 1.3% over the past three days, HwangDBS Vickers Research sees the FBM KLCI may still be in the mood to add on further gains ahead, possibly climbing towards its immediate resistance level of 1,340 on improving sentiment.
It said on Friday, July 9 the first boost comes from the extended recovery on Wall Street, which saw its key equity barometers rising between 0.7% and 1.2% at the closing bell last night lifted by better retail sales data and a drop in jobless claims.
Providing an added boost was is Bank Negara's decision to raise the overnight policy rate by 0.25% yesterday evening, its third straight increase (of a similar magnitude) since early March.
'In a sense, this signals the policymakers' confidence in our economic strength amid the ongoing European financial crisis, which could also enhance the investment appeal of the Ringgit.
'On individual stock impacts, the potential beneficiaries include banks with a high proportion of variable rate loans (such as Maybank, RHB Cap and Hong Leong Bank) while sentiment on property companies (like SP Setia) may be affected marginally by rising mortgage rates,' it said.
It said on Friday, July 9 the first boost comes from the extended recovery on Wall Street, which saw its key equity barometers rising between 0.7% and 1.2% at the closing bell last night lifted by better retail sales data and a drop in jobless claims.
Providing an added boost was is Bank Negara's decision to raise the overnight policy rate by 0.25% yesterday evening, its third straight increase (of a similar magnitude) since early March.
'In a sense, this signals the policymakers' confidence in our economic strength amid the ongoing European financial crisis, which could also enhance the investment appeal of the Ringgit.
'On individual stock impacts, the potential beneficiaries include banks with a high proportion of variable rate loans (such as Maybank, RHB Cap and Hong Leong Bank) while sentiment on property companies (like SP Setia) may be affected marginally by rising mortgage rates,' it said.
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