Tuesday, December 13, 2011

HDBSVR sees KLCI taking a slide Tuesday, support at 1,445

KUALA LUMPUR (Dec 13): Hwang DBS Vickers Research said the key FBM KLCI may take a slide on Tuesday after backing off from the immediate resistance level of 1,475 on Monday.

The research house said on Tuesday the KLCI would probably be on its way towards the first support line of 1,445 ahead.

HDBSVR said this comes as Wall Street reversed direction overnight where the major U.S. equity indices slumped between 1.3% and 1.5% at the closing bell.

The overnight fall was caused by investors' concerns that international rating agencies could be looking to downgrade the sovereign credit ratings of some European countries despite the stopgap measures announced at a regional summit last weekend.

To be watched next is the outcome of the Federal Open Market Committee meeting later Tuesday.

Against the weak market backdrop, investors may consider putting their money in defensive stocks that pay regular dividends such as Guinness Anchor (which has just declared a special interim dividend of 60 sen per share) and Berjaya Sports Toto (after announcing a second interim dividend of 8.0 sen per share).

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