Tuesday, April 19, 2011

HDBSVR: KLCI may surrender all its gains made on Monday

KUALA LUMPUR: Hwang DBS Vickers Research said the key FBM KLCI may surrender all its gains of 6.0 points made on Monday, April 18 on renewed selling pressures due to external headwinds.

It said on Tuesday that as a consequence, the benchmark index could test its 39-day moving average line, which is currently hovering around 1,518.

'The bears reigned on Wall Street last night. Major U.S. equity indices slumped 1.1% each following the downgrade in the American credit outlook by S&P to negative while rising concerns on Europe's debt crisis dented sentiment further,' it said.

In terms of news flows for Tuesday, the focus will likely be on: (a) the Economic Transformation Plan (ETP) briefing scheduled Tuesday afternoon as the government is expected to provide a progress report and announce a slew of new projects; (b) Bursa Malaysia, which is due to release its Jan ' Mar quarterly financial results around noon time; and (c) Key West, in response to news that it plans to extract crude oil from marginal oilfields in Indonesia via a joint venture arrangement.

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