Friday, March 4, 2011

HDBSVR sees KLCI posting mild gains, underpinned by Wall St gains

KUALA LUMPUR: Continuing its recovery, the benchmark FBM KLCI, which is up 17.6-points or 1.2% over the past four days, will probably climb a bit more on Friday, March 3, rising towards the immediate resistance target of 1,530, says Hwang DBS Vickers Research (HDBSVR).

It said the local market and other regional peers could be riding on the strength of Wall Street ahead.

Overnight, major U.S. stock indices jumped between 1.6% and 1.8% following positive data reports on a drop in jobless claims and a growth in service industries.

'Possibly lifting our local stock exchange today are beaten-down big caps like Genting and CIMB.

'In terms of corporate developments, there could be interest in: (a) Lion Industries and Lion Forest Industries, which would be investing a total of RM475m for a combined 49% stake in unlisted Lion Blast Furnace (with the balance 51% to be owned by Lion Diversified); and (b) KNM, after announcing that it has secured RM693m in new orders so far this year, taking its current order book to RM6.4b,' HDBSVR said.

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