Wednesday, January 12, 2011

HDBSVR: KLCI may see limited downside risk ahead

KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) said the FBM KLCI, after experiencing a brief consolidation over the last two days, may see relatively limited downside risk ahead.

It said on Wednesday, Jan 12 the benchmark index ' down 9.3 points or 0.6% so far this week ' could find immediate support at the 1,550 level.

'A recovery process will probably follow soon after,' it said.

HDBSVR said there was also a slight uptick on Wall Street last night. Major U.S. equity indices were up between 0.3% and 0.4% at the closing bell mainly lifted by better corporate earnings expectations and higher energy prices.

In terms of individual corporate actions onBursa Malaysia, counters worth watching out for include:

(a) Asia Pacific Land, as its major shareholder has made an offer to acquire all its assets and liabilities for 45 sen per share;

(b) Affin, in response to a news report which said that a rumour of CIMB taking over Affin may not be true; and

(c) Olympia, after one of its subsidiary signed an agreement to jointly undertake the sales of 3-digit and 4-digit games in Taiwan.


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