Thursday, May 5, 2011

HDBSVR: KLCI to see marginal downward bias

KUALA LUMPUR: Hwang DBS Vickers Research said the benchmark FBM KLCI will probably swing sideways with a marginal downward bias ahead on Thursday, May 5.

'From a technical perspective, the key market barometer is expected to pull away from the immediate support-turned-resistance level of 1,530,' it said.

On Wall Street, key U.S. equity indices retreated between 0.5% and 0.7% at the closing bell following a lower-than-expected employment growth in private sectors in Apr11, which raised concern on the sustainability of the economic growth.

Hwang DBS Vickers Research said in terms of individual corporate developments, investors will probably focus on: (a) Tambun Indah and Mutiara Goodyear as both parties entered into a JV to develop a 213ha land in Seberang Perai; (b) MISC, following a media report that it is looking to sell three older container vessels on a tender basis for US$6m per vessel; and (c) Major shareholders in Perodua, namely UMW and MBM, after Perodua expected production to fully recover by July. Also, Bank Negara is scheduled to announce the OPR later Thursday, with consensus expecting the OPR to be maintained at 2.75%.

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