Thursday, October 20, 2011

HDBSVR: KLCI to come under selling pressure, may test 1,445

KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) said the key FBM KLCI will likely come under selling pressures on Thursday, Oct 20.

'Technically speaking, the benchmark index could test and break below its immediate support level of 1,445 ahead,' it said.

HDBSVR said on the external front, sentiment is expected to turn cautious following news that it would not be easy for the European nations to come to an agreement on how to resolve the regional sovereign debt problems.

Reacting to this concern, major U.S. equity indices dropped between 0.6% and 2.0% at the closing bell last night.

Back home, stocks that may be of interest today include: (a) Redtone International, after its managing director said the telecommunications service provider might return to the black this year; (b) Harvest Court, whose managing director cum major shareholder has offered to buy the entire stake held by Affin Bank comprising 31.4m shares and 7.9m warrants at RM0.20 per share; and (c) BAT Malaysia, which is due to announce its financial results for the Jul-Sep quarter this evening.

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