Friday, August 19, 2011

HDBSVR: Bears are back

KUALA LUMPUR: Hwang DBS Vickers Research said the bears are back, causing Wall Street to tumble again overnight on Thursday, Aug 18.

Key U.S. equity indices slumped between 3.7% and 5.2% at the closing bell on mounting concerns that the global economic recovery would stall while European banks could face capital constraints.

HDBSVR said on Friday, Aug 19 the negative vibes will surely be felt across the region.

'Back home, we expect the benchmark FBM KLCI to slip below its immediate support level of 1,495, possibly falling towards the next support mark of 1,465,' it said.

In terms of corporate development, we may see interest from investors in: (a) Dialog Group, which has proposed a rights issue with warrants (on the basis of 2 rights shares and 1 warrant for every 10 shares held); and (b) Petra Energy, following The Edge FinancialDaily report that its parent Perdana Petroleum is looking to sell its 29.6% stake in the company.

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