Thursday, November 25, 2010

HDBSVR: Further recovery for FBM KLCI

KUALA LUMPUR: Hwang DBS Vickers Research said the FBM KLCI, after bouncing up from an intra-day low of 1,476.82 to settle at 1,488.54 on Wednesday, Nov 24, would probably show a further recovery ahead.

It said in its technical outlook for Thursday that the benchmark index may attempt to cross the immediate resistance threshold of 1,495.

Major U.S. equity barometers also rebounded last night ' up between 1.4% and 1.9% at the closing bell ' lifted by a drop in jobless claims and a rise in consumer confidence level. This should shore up sentiment across the region.

Hwang DBS Vickers Research said more market action driven by the current trend of M&A corporate exercises will be at play.

The proposed merger between Sunway Holdings and Sunway City ' which will be carried out via the acquisitions of all the assets and liabilities to be satisfied by a combination of shares and cash at an indicative price of RM2.60 per Sunway Holdings share and RM5.10 per Sunway City share ' should attract much interest from investors.

Hwang DBS Vickers Research said among the slew of companies that announced their latest financial results on Wednesday, KNM surprised on the upside with a strong set of earnings performance.

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