Published: Wednesday August 29, 2012 MYT 8:34:00 AM
HDBSVR sees KLCI trading range bound
KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) sees the FBM KLCI trading range bound amid mixed market breadth for the time being in the absence of strong overseas leads and due to earnings disappointments.
It said on Wednesday that ahead of the highly anticipated U.S. Federal Reserve chairman's speech in Jackson Hole on Friday, investors were not doing much on Wall Street. Key US equity indices were mixed with daily changes of between -0.2% and +0.1% last night.
“The same could be said for our Malaysian bourse today. With no fresh developments to prompt investors to either turn more bullish or bearish, we reckon the FBM KLCI may continue to be range-bound,” it said.
HDBSVR said more earnings disappointments than positive surprises were reported by the listed companies on Tuesday evening.
“The below par financial results came from the likes of AirAsia, Genting Plantations, IJM Plantations and IJM Corporation. “In addition, Bonia shares may face downward pressures as the takeover offer price of RM2.04 per share is significantly below the prevailing market price of RM2.58,” it said.