KUALA LUMPUR (Nov 15): Hwang DBS Vickers Research said on Tuesday the benchmark FBM KLCI could slip below the resistance-turned-support level of 1,475.
It said the weakness in the local market followed an overnight drop on Wall Street where key US equity indices lost between 0.6% and 1.0% as rising Italian bond yields renewed worries that the worst might be far from over for the European sovereign debt crisis.
“Against the bearish backdrop, penny stocks that have jumped significantly of late – like DPS Resources, SYF Resources, Federal Furniture and Emico – are vulnerable to selling pressures. This comes as Bursa Malaysia – after issuing a string of market queries on an increasing number of heavily traded small-cap companies – has declared the shares of Harvest Court as designated securities (when it resumes trading tomorrow),” it said.
HDBSVR said hoping to buck the weak market trend are RHB Capital and OSK Holdings, amid news that their proposed merger is targeted to be finalised by the middle of next month. Separately, banking giant CIMB is scheduled to announce its July-September quarterly earnings later in the evening.
It said the weakness in the local market followed an overnight drop on Wall Street where key US equity indices lost between 0.6% and 1.0% as rising Italian bond yields renewed worries that the worst might be far from over for the European sovereign debt crisis.
“Against the bearish backdrop, penny stocks that have jumped significantly of late – like DPS Resources, SYF Resources, Federal Furniture and Emico – are vulnerable to selling pressures. This comes as Bursa Malaysia – after issuing a string of market queries on an increasing number of heavily traded small-cap companies – has declared the shares of Harvest Court as designated securities (when it resumes trading tomorrow),” it said.
HDBSVR said hoping to buck the weak market trend are RHB Capital and OSK Holdings, amid news that their proposed merger is targeted to be finalised by the middle of next month. Separately, banking giant CIMB is scheduled to announce its July-September quarterly earnings later in the evening.
