HDBSVR sees KLCI testing 1,650

KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) expects the FBM KLCI, which surged to an all-time intra-day high of 1,647 before closing at 1,639 on Tuesday, would probably continue riding on the positive momentum generated.

“On the chart, the benchmark index could pull away from its resistance-turned-support line of 1,635, possibly climbing towards the next resistance target of 1,650,” it said in its market outlook on Wednesday. HDBSVR said overseas, sentiment might get a boost after the U.S. Federal Reserve chairman said policymakers are prepared to take stimulus action to boost the economy if needed. In response, leading equity indices on Wall Street rose between 0.5% and 0.7% at the closing bell. At Bursa Malaysia, Ingress could see trading action, after its chairman was quoted as saying that it has received several offers to take the company private although nothing has been decided yet.

Silk Holdings had secured contracts to provide for supply vessels worth RM35mil while Bursa Malaysia is scheduled to release its latest quarterly results during lunch hours.