Published: Tuesday July 10, 2012 MYT 8:33:00 AM
HDBSVR sees marginal negative bias for KLCI
KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) expects the key FBM KLCI to trade sideways with a marginal negative bias on Tuesday following the weaker overnight close on Wall Street.
In its market outlook, it said that on the chart, the benchmark index will probably find immediate support at the 1,610 level.
On Wall Street, selling pressure pushed major US stock indices down between 0.2% and 0.3%. Essentially, sentiment was affected by rising Spanish bond yields, an indication that the eurozone sovereign debt crisis is far from over.
HDBSVR said as for the local market, in terms of news flows, Aliran Ihsan Resources would be in focus, as it would undertake a proposed selective capital reduction and repayment exercise that would result in major shareholder MMC buying out minority shareholders at RM1.84 per share.
Also in focus would be Coastal Contracts, after securing contracts for the sale of offshore support vessels for a total value of RM446mil.
The research house said Lion Corporation and Lion Diversified could be in focus, amid media reports stating that their financially strapped unit Megasteel might be given at least another year to put its house in order based on recommendations made in a government-led industry restructuring report.