Monday, February 14, 2011

HDBSVR expects FBM KLCI to show early signs of stability ahead

KUALA LUMPUR: Hwang DBS Vickers Research said after a plunge of 45 points or 2.9% in three days in the week ended Feb 11, the benchmark FBM KLCI may show early signs of stability ahead.

'If so, then the key market barometer could stage a mild technical rebound by bouncing away from the immediate support level of 1,495 today,' it said on Monday, Feb 14.

HDBSVR said external sentiment will likely improve too on the back of a higher close on Wall Street. Key U.S. equity indices rose between 0.4% and 0.7% last Friday to new highs post the crisis days lifted by better retail sales and an end to the Egypt protest.

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In terms of share price actions, the interest could be in counters like: (a) Pos Malaysia following one news report saying that a consortium led by entrepreneur Tan Sri Syed Mokhtar is close to buying over a 32% stake in the company; and (b) Sarawak-based companies (such as Cahya Mata Sarawak, Naim Holdings, Dayang, Sarawak Cable, Petra Energy) amid news flows that the state election might be called within the next two to three months.


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