Wednesday, April 27, 2011

HDBSVR sees KLCI testing 1,530

KUALA LUMPUR: Hwang DBS Vickers Research said with Wall Street surging to a new high post the 2008 global financial crisis, this could lift investors' sentiment across the region, including Malaysia, on Wednesday, April 27.

Major U.S. equity indices rose between 0.8% and 0.9% overnight, thanks mainly to rising corporate earnings momentum.

'Given the positive external backdrop, there is a possibility the benchmark FBM KLCI would rise and test the immediate resistance level of 1,530 ahead. A breakout may subsequently propel the bellwether towards its next resistance target of 1,550,' it said.

HDBSVR said in terms of news flows, while waiting for the outcome of the U.S. Federal Open Market Committee meeting Wednesday night, investors can keep an eye on selected China stocks listed in Malaysia and Malaysian companies with China exposure.

The Prime Minister of China will be in town from Wednesday until Saturday to witness the signing of agreements in the key economic areas such as agriculture/food, infrastructure and education.

Meanwhile, Kencana Petroleum shares will probably attract added interest too after winning an oil & gas contract valued at RM208m.

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