Monday, February 7, 2011

HDBSVR: FBM KLCI poised for positive start

KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) expects the Malaysian bourse to hop off to a positive start in the Year of the Rabbit on Monday, Feb 7.

Last Wednesday, the FBM KLCI jumped 11.9 points or 0.8% with an overall trading volume of 1.5 billion shares in just half a day of trading.

'The benchmark FBM KLCI is expected to pull away from the resistance-turned-support level of 1,530, possibly climbing towards the resistance line of 1,550 next,' the research house said.

During the two-day closure of Bursa Malaysia in conjunction with the Lunar New Year festival, some regional markets posted positive performances, led by Japan (+0.8%), Thailand (+0.7%) and Indonesia (+0.4%).

On Wall Street, key U.S. equity bellwethers closed higher (up between 0.4% and 0.7% since last Wednesday) ended at fresh highs post crisis. In addition, the ringgit has climbed to RM3.03/US$ last Friday, a new peak following the removal of the peg in July 2005.

'Riding on the rising market momentum, big-cap stocks in the banking and PLANTATION [] sectors are likely to be among the prime beneficiaries from renewed buying interest today.

'Separately, Wellcall's share price could also gain after a business daily reported that the cash-rich company is in a position to pay generous dividends to its shareholders,' it said.


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