KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) said the key FBM KLCI may come under renewed selling pressures on Wednesday, May 4, possibly dropping below the first support level of 1,530.
It said on May 4 that its immediate downside risk will likely be cushioned by the 39-day moving average line, which currently stands at 1,525.
'This comes as there is an absence of fresh market leads particularly from abroad. Overnight, U.S. equity indices ended between flat and slightly weaker as commodity prices eased,' it said.
In terms of individual share price actions, HDBSVR said the focus will probably be on:
(a) RHB Capital after a media report said major shareholder Abu Dhabi Commercial Bank is keen to dispose of its 25% stake in the banking group at 2x book value or RM10 per share;
(b) Ramunia, which has just proposed a regularisation plan to uplift the company from its PN17 status, comprising a capital reCONSTRUCTION [], a 2-for-5 rights issue (at an indicative price of RM0.40) and a business rejuvenation plan; and
(c) TRC Synergy, following the award of a RM45m contract to provide service support for submarines.
It said on May 4 that its immediate downside risk will likely be cushioned by the 39-day moving average line, which currently stands at 1,525.
'This comes as there is an absence of fresh market leads particularly from abroad. Overnight, U.S. equity indices ended between flat and slightly weaker as commodity prices eased,' it said.
In terms of individual share price actions, HDBSVR said the focus will probably be on:
(a) RHB Capital after a media report said major shareholder Abu Dhabi Commercial Bank is keen to dispose of its 25% stake in the banking group at 2x book value or RM10 per share;
(b) Ramunia, which has just proposed a regularisation plan to uplift the company from its PN17 status, comprising a capital reCONSTRUCTION [], a 2-for-5 rights issue (at an indicative price of RM0.40) and a business rejuvenation plan; and
(c) TRC Synergy, following the award of a RM45m contract to provide service support for submarines.
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