Thursday, November 10, 2011

HDBSVR expects Malaysian market to be hit

KUALA LUMPUR (Nov 10): Hwang DBS Vickers Research (HDBSVR) expects the Malaysian stock market to be hit on Thursday after the sharp overnight fall on Wall Street.

It said on Thursday the bears are back, selling down major US equity indices by between 3.2% and 3.9% last night.

Essentially, sentiment turned negative again as worries over whether Europe would be able to resolve its mounting sovereign debt woes have now spread from Greece to Italy.

'Our Malaysian bourse will likely be hit too when trading resumes this morning. The benchmark FBM KLCI could test and break under the immediate support level of 1,475 ahead,' it cautioned.

HDBSVR said stocks that may succumb to selling pressures today include: (a) penny stocks that have climbed sharply of late, such as Harvest Court; and (b) Tenaga, following S&P's downgrade on the utility's outlook from stable to negative.

Meanwhile, defensive counters like PLUS could attract interest after announcing that it would be paying additional dividends (quantum to be decided later) to its shareholders.

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