Thursday, June 30, 2011

HDBSVR: KLCI set to test new highs

KUALA LUMPUR: Hwang DBS Vickers Research said the FBM KLCI, after crossing the immediate resistance level of 1,575 on Wednesday, June 29, it could attempt to reach a new record high on Thursday by surpassing the previous peak of 1,577.

HDBSVR said the external environment, meanwhile, stabilized further following the passing of a first austerity bill by the Greek parliament to resolve the country's debt problems.

In reaction, key U.S. equity indices were up between 0.4% and 0.8% at the closing bell.

'As our local bourse continues to show a positive momentum, investors may consider buying stockbrokers like TA Enterprise, which has just released a strong set of quarterly financial results last evening,' it said.

HDBSVR said other small cap names that could attract attention include: (a) Yinson, after announcing a two-call rights issue on the basis of three rights shares for every two existing shares held at an issue price of RM1.00 per rights share (of which RM0.75 is payable by cash and RM0.25 to be payable via the capitalization of the company's reserves);

and (b) Merge Housing, as the company has received a conditional takeover offer to acquire all the remaining shares held at a cash offer price of RM0.65 each.

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