KUALA LUMPUR (Feb 10): HwangDBS Vickers Research said the key FBM KLCI – which saw a surge in the last few minutes of trading on Thursday – could gap down at the opening bell before staging a subsequent recovery on Friday.
“Against a fairly resilient market backdrop, the benchmark index will likely tread above the resistance-turned-support level of 1,555 in the near term,” it said in its market outlook report.
As for external events, it said major U.S. equity indices were up slightly on Thursdayl night – rising between 0.1% and 0.4% – after Greek political leaders agreed to impose austerity measures in exchange for international bailout funds.
“After the recent sharp market rally, investors may be keen to look for laggards amid the prevailing positive sentiment. Despite the absence of visible fundamental catalysts, rotational plays will likely persist ahead.
“Hence, following the increased interest in water-related counters yesterday, laggard stocks within the sector like EngTex and Weida may also come into the limelight. Separately, Mahajaya’s share price should see action due to a takeover exercise at a cash offer price of 85 sen per share (versus its last done price of 73 sen),” said HDBSVR.
“Against a fairly resilient market backdrop, the benchmark index will likely tread above the resistance-turned-support level of 1,555 in the near term,” it said in its market outlook report.
As for external events, it said major U.S. equity indices were up slightly on Thursdayl night – rising between 0.1% and 0.4% – after Greek political leaders agreed to impose austerity measures in exchange for international bailout funds.
“After the recent sharp market rally, investors may be keen to look for laggards amid the prevailing positive sentiment. Despite the absence of visible fundamental catalysts, rotational plays will likely persist ahead.
“Hence, following the increased interest in water-related counters yesterday, laggard stocks within the sector like EngTex and Weida may also come into the limelight. Separately, Mahajaya’s share price should see action due to a takeover exercise at a cash offer price of 85 sen per share (versus its last done price of 73 sen),” said HDBSVR.
