Thursday, December 16, 2010

HDBSVR sees profit taking in near term

KUALA LUMPUR: Hwang DBS Vickers Research said in the absence of fresh buying catalyst emerging, investors could be tempted to take profit in the near term.

It said on Thursday, Dec 16 there was no visible lead coming out from Wall Street last night as key U.S. equity indices eased between 0.2% and 0.5% at the closing bell.

'On the chart, the benchmark FBM KLCI may show a bit more weakness, possibly dropping towards its immediate support level of 1,495 ahead,' it said.

Hwang DBS Vickers Research said following Top Glove's below par earnings report that was caused by challenging industry factors, other glove manufacturers like Supermax, Kossan and Careplus may also suffer from investors' cautious sentiment on the sector.

Another counter that should see further selling pressures is LCL after Bursa Malaysia said the stock would be suspended on Dec 23 and de-listed on Dec 27 unless an appeal is submitted.

Meanwhile, Hirotako's share price will likely get a little boost as the company plans to undertake a bonus issue on the basis of one free warrant for every four existing shares held.

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