Tuesday, March 22, 2011

HDBSVR: KLCI will extend recovery momentum

KUALA LUMPUR: Hwang DBS Vickers Research said the Malaysian stock market's performance was surprisingly resilient on Monday, March 21 with gainers beating losers by a ratio of almost three-to-one.

'After a 5.0-point increase, the benchmark FBM KLCI will probably extend its recovery momentum today as it makes its way towards the immediate resistance line of 1,530,' it said on Tuesday.

Giving a lift to the overall market sentiment is an overnight jump on Wall Street. Leading U.S. equity indices climbed between 1.5% and 1.8% at the closing bell following a news report saying that the threat of a nuclear meltdown in Japan has eased.

Among the counters that could attract trading interest today include AMMB after ANZ said it has intention to raise its existing interest (of 24%) to a controlling stake.

Nevertheless, in a separate news article, major shareholder Tan Sri Azman Hashim mentioned he has no plans to sell his shares.

Also in focus would be Kulim, in response to a media report saying that the Malay Chamber is prepared to buy over the 53% stake in Kulim held by Johor Corp.

Benalec could see trading interest after it secured a reclamation contract in Selangor worth RM37m.

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