Published: Wednesday October 10, 2012 MYT 8:55:00 AM
HDBSVR sees downward pressure on Malaysian equities
KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) sees downward pressure on Malaysian equities following the overnight fall on Wall Street.
It said on Wednesday that leading US equity indices fell between 0.8% and 1.5% at the closing bell as sentiment was hit by a downgrade in growth forecasts for the world's economy by the International Monetary Fund.
"Following Wall Street's overnight decline, we may see a return of selling activity on our Malaysian stock exchange today. This could put downward pressures on the key FBM KLCI, which may slide towards its immediate support line of 1,655 ahead," it said in its market outlook.
HDBSVR sees said in terms of news flows, plantation shares could see action on the back of the release of the September monthly statistics later on Wednesday.
The data could possibly influence the three-month forward CPO price movements, after barely recovering from a 35-month low of RM2,230 last Wednesday to RM2,438 yesterday.
"On the corporate front, there will likely be added interest in: (a) MPHB, which has agreed to sell its stockbroking arm for RM170mil; (b) Gadang, in response to its follow-up announcement that the contract value for its RAPID project in Johor is worth RM313mil; and (c) Opcom, as it has secured a cable supply contract valued at RM93mil," it said.