Friday, December 2, 2011

HDBSVR sees Tenaga giving KLCI a boost amid cautious mkt

KUALA LUMPUR (Dec 2): Hwang DBS Vickers Research expects power giant TENAGA NASIONAL BHD [] (TNB) to give the FBM KLCI a boost on Thursday amid a more cautious market after the weaker overnight close on Wall Street.

The research house said TNB would benefit from the fuel cost sharing mechanism with Petronas and the government, which would translate to substantial cost savings.

As for the broader market, HDBSVR said the KLCI after posting cumulative gains of 53.7 points or 3.8% over three straight days, the benchmark FBM KLCI could swing sideways with a marginal downward bias ahead.

'The immediate support and resistance levels are currently seen at 1,475 and 1,500, respectively,' it said.

As for Wall Street, the research house said the US market gave a mixed performance last night in the absence of more market-stimulating news.

Key U.S. equity indices ended between -0.2% and +0.2% following a three-day winning streak.

As for Bursa Malaysia, it said TPC Plus shares may see action after a local newspaper speculated Huat Lai Resources could announce by the end of next month a mandatory general offer for TPC Plus at not less than 30 sen per share.

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