Tuesday, February 22, 2011

HDBSVR: FBM KLCI most probably to give up all its Monday gains

KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) said the benchmark FBM KLCI would on Tuesday, Feb 22 most probably give back all of its 8.3-points gain made on Monday.

On Monday, three counters (Maybank, Genting and Tenaga) lifted the index by 8.0 points while market breadth came in negative.

'Essentially, with the underlying sentiment still jittery, we expect the bellwether to pull back towards its immediate support level of 1,495,' it said in its market outlook.

HDBSVR said adverse external developments could prompt investors to sell equities in Asia too.

While Wall Street was closed last night, European bourses suffered a sell-off (the FTSE 100 dropped 1.1%) mainly in response to heightened political crisis in Libya. This triggered inflationary concerns fuelled by rising crude oil prices.

'Against a weak market backdrop, investors will be looking for individual corporate news for share price leads. For example, Oriented Media shares may attract added interest following a media report saying that Bina Puri may inject its manufacturing and power assets into the company under a reverse takeover exercise,' it said.

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