Wednesday, April 6, 2011

HDBSVR: Market likely to consolidate

KUALA LUMPUR: Hwang DBS Vickers Research said as consolidation activity is likely to persist, the local stock market may move inside a narrow trading band on Wednesday, April 6.

It said this follows a cumulative increase of 38.8-point or 2.6% since last Monday for the benchmark FBM KLCI, which is expected to defend its recent gains at the support level of 1,550.

There was also no overnight lead from Wall Street. Major U.S. equity indices finished flat on concerns that the Federal Reserve might start to withdraw stimulus measures under its quantitative easing program.

In terms of individual corporate developments, there could be share price actions in: (a) RHB Capital in response to its application to extend the implementation timeline of a rights issue by six months to October 2011, thus fuelling talks of possible changes in its shareholding structure; and (b) MAA Holdings, which may sell its 70% stake of its composite insurance business to Zurich Insurance for RM1.2b according to one news articl

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