Friday, December 3, 2010

HDBSVR: Recovery of Bursa Malaysia to continue

KUALA LUMPUR: Hwang DBS Vickers Research said the recovery of the Malaysian bourse should continue on Friday, Dec 3 following an extended rally on Wall Street overnight where key U.S. equity indices were up between 0.9% and 1.3% at the closing bell lifted by optimistic economic data.

'Given the positive external backdrop, the benchmark FBM KLCI will probably pull further away from the psychological mark of 1,500, possibly heading towards its resistance level of 1,525,' it said.

HDBSVR said news flows on Friday include the release the external trade statistics for October with one media survey projecting exports slipping 0.9% y-o-y while imports would rise by 6.3% y-o-y, translating to a monthly trade surplus of RM7.9b.

On the corporate front, there could be added interest in: (a) Telekom Malaysia after it stated its intention to dispose of 191.5m shares or 2.3% stake in Axiata, potentially raking in a cash proceed of RM907m (based on Thursday's closing price); and (b) PPB Group following its announcement to issue new shares in a subsidiary company to Wilmar and acquire stakes in companies based in China from Wilmar.

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