KUALA LUMPUR: Hwang DBS Vickers Research said the bears could be roaming around Asia on Wednesday, Aug 3 following Wall Street's overnight slump.
It said major U.S. stock indices plunged between 2.2% and 2.7% as investors reacted adversely to an unexpected drop in consumer spending, which was then read as a signal that the recovery in the world's largest economy might be losing steam already.
'Malaysia equities will probably be hit too when trading resumes this morning. The benchmark FBM KLCI may break below the immediate support level of 1,550, possibly falling towards its next support line of 1,530 ahead,' it said.
HDBSVR said hoping to buck the bearish market trend on our local bourse are companies with positive news flows such as: (a) CB Industrial Product, which has just clinched a government contract valued at RM171 million to supply fire rescue equipment; and (b) SapuraCrest Petroleum after it has won jobs worth up to RM770 million at a natural gas project off Western Australia.
It said major U.S. stock indices plunged between 2.2% and 2.7% as investors reacted adversely to an unexpected drop in consumer spending, which was then read as a signal that the recovery in the world's largest economy might be losing steam already.
'Malaysia equities will probably be hit too when trading resumes this morning. The benchmark FBM KLCI may break below the immediate support level of 1,550, possibly falling towards its next support line of 1,530 ahead,' it said.
HDBSVR said hoping to buck the bearish market trend on our local bourse are companies with positive news flows such as: (a) CB Industrial Product, which has just clinched a government contract valued at RM171 million to supply fire rescue equipment; and (b) SapuraCrest Petroleum after it has won jobs worth up to RM770 million at a natural gas project off Western Australia.
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