HDBSVR sees Malaysian equities moving sideways

KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) sees Malaysian equities moving sideways for the time being as the underlying sentiment is still weak.
“Nevertheless,
the benchmark FBM KLCI may see a mild technical rebound to recover some
of its 40.3-point (or 2.4%) losses suffered since last Wednesday,” it
said on Thursday. HDBSVR said trading activity which stood at only 804
million shares on Wednesday would likely be slow ahead of the outcome
of the U.S. Federal Open Market Committee (FOMC) meeting.
“Essentially,
there have been growing expectations for the monetary authority to
pursue another round of quantitative easing to boost the economy,” it
said. The research house said with investors going defensive at the
moment, dividend yielding stocks could be in favour.
These stocks include the retail REITs such as CMMT, Sunway REIT and Pavilion REIT. Separately, Maybank
could be in the limelight after a local business daily reported that it
may be one of the potential buyers to acquire a stake in Thailand's Bank of Ayudhya from General Electric Co.