Wednesday, April 13, 2011

HDBSVR sees sentiment on Bursa to remain weak

KUALA LUMPUR: Hwang DBS Vickers Research said sentiment on the Malaysian bourse will likely remain weak on Wednesday, April 13 after being hit on Tuesday.

'In essence, given the clouds of uncertainties locally and on the external front, investors are expected to turn more cautious ahead,' it said on Wednesday.

Consequently, the benchmark FBM KLCI could struggle to clear the support-turned-resistance level of 1,530 while its immediate support level is now seen at 1,495.

HDBSVR said there were no new major news from Tuesday's Invest Malaysia conference, which still has one more day to go.

'There are also concerns that the ruling coalition might lose more ground than initially expected in the Sarawak state elections this coming Saturday, which then affected investors' confidence. Abroad, the heightened nuclear radiation worry in Japan is an added risk factor, which caused key U.S. stock indices to slip between 0.8% and 1.0% last night,' it said.

Amid the nervous market backdrop, stocks that could be in the focus'' include: (a) Berjaya Sports Toto following a media report saying that it is contemplating to sell a 49% stake in its unlisted numbers forecast operation for US$1b; and (b) E&O, which has just received an in-principle approval for its property development master plan in Penang.

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