Wednesday, November 24, 2010

HDBSVR: Test of resilience for Malaysian equities

KUALA LUMPUR: Hwang DBS Vickers Research said it is going to be a test of resilience on the Malaysian stock market on Wednesday, Nov 24 following the rising political tension in Korea.

'Should the FBM KLCI ' after plunging 15.7 points or 1.0% on Tuesday'' ' gap down further, the benchmark index may be on its way to test the technical support level of 1,465,' it said.

Hwang DBS Vickers Research said Wall Street was affected too, with its major equity bellwethers dropping between 1.3% and 1.5% last night. At this juncture, it does not seem that the military exchange of fires between North Korea and South Korea would intensify, although it would probably take time for the situation to calm down.

'Amid the anxious external backdrop, the market highlight today will be on investors' reactions to the proposed merger between MRCB and IJM Land, whereby shares in both companies will be exchanged for securities (and cash) in a new company based on an indicative price of RM3.65 per IJM Land share and RM2.30 per MRCB share,' it said.

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