KUALA LUMPUR: Hwang DBS Vickers Research said it is going to be a test of resilience for the Malaysian bourse on Tuesday, July 12.
'We reckon the benchmark FBM KLCI will probably slip towards the immediate support mark of 1,575 ahead,' it said.
HDBSVR said this follows an overnight slump on Wall Street. In particular, major U.S. equity indices plunged between 1.2% and 2.0% at the closing bell on rising concerns that the debt woes in Europe as well as U.S. could spread.
It said that hoping to buck the bearish market sentiment are stocks like Kencana Petroleum and SapuraCrest, following a proposal to merge their businesses via a special purpose vehicle (SPV).
The SPV will acquire the assets and liabilities of both companies at a respective price of: (i) RM3.00 per Kencana Petroleum share to be satisfied by RM0.486 in cash and 1.26 new SPV shares per Kencana Petroleum share; and (ii) RM4.60 per SapuraCrest share to be satisfied by RM0.685 in cash and 1.96 new SPV shares per SapuraCrest share.
'We reckon the benchmark FBM KLCI will probably slip towards the immediate support mark of 1,575 ahead,' it said.
HDBSVR said this follows an overnight slump on Wall Street. In particular, major U.S. equity indices plunged between 1.2% and 2.0% at the closing bell on rising concerns that the debt woes in Europe as well as U.S. could spread.
It said that hoping to buck the bearish market sentiment are stocks like Kencana Petroleum and SapuraCrest, following a proposal to merge their businesses via a special purpose vehicle (SPV).
The SPV will acquire the assets and liabilities of both companies at a respective price of: (i) RM3.00 per Kencana Petroleum share to be satisfied by RM0.486 in cash and 1.26 new SPV shares per Kencana Petroleum share; and (ii) RM4.60 per SapuraCrest share to be satisfied by RM0.685 in cash and 1.96 new SPV shares per SapuraCrest share.
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