Wednesday, November 2, 2011

HDBSVR: KLCI to fall below 1,475

KUALA LUMPUR (Nov 2): Hwang DBS Vickers Research expects the Malaysian stock market will probably come under extended selling pressures on Tuesday following the overnight fall on Wall Street.

It said the FBM KLCI is expected to drop below the immediate support level of 1,475, possibly falling towards the next support line of 1,445 ahead.

'Essentially, sentiment will be clouded by a bearish external backdrop after Greece's government surprised the financial markets by calling for a referendum on its latest bailout package, which could derail the European rescue plan,' it said.

HDBSVR said in reaction, major equity indices on Wall Street slumped between 2.5% and 2.9% last night, as investors also wait for the outcome of the U.S. Federal Open Market Committee later Wednesday night.

'Hoping to buck the weak market pattern today are stocks like: (a) SapuraCrest Petroleum, which has been awarded a contract worth US$1.4b by Petrobras to charter and operate three vessels; and (b) Supermax, after proposing a 1-for-1 bonus issue and a share buyback programme,' it said.

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