Wednesday, August 25, 2010

FBM KLCI expected to pull back sooner, says HDBSVR

KUALA LUMPUR: With Wall Street coming under renewed selling pressures, the FBM KLCI is expected to pull back sooner rather than later, Hwang DBS Vickers Research said in its outlook report on Wednesday, Aug 25.

The Dow Jones industrial average fell 133.96 points, or 1.32%, to 10,040.45. The Standard & Poor's 500 Index shed 15.49 points, or 1.45%, to 1,051.87. The Nasdaq Composite Index lost 35.87 points, or 1.66%, to 2,123.76.

On the performance of the local stock market, HDBSVR said despite seeing more losers (585) than gainers (206) on Tuesday, which was a sign of profit-taking activity taking place, the 30-stocks FBM KLCI extended its winning streak to eight days in a row, rising 56.4-point or 4.2% along the way.

'Still, against a backdrop of bearish external sentiment, we reckon the bellwether could slide towards (and possibly break below) its immediate support level of 1,395 ahead,' it said.

Meanwhile, there was no major surprise in the bunch of corporate result announcements out yesterday evening, the research house said. Up next will be the earnings report cards of Axiata and IJM Corporation to be released later Wednesday.

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