HDBSVR sees KLCI backing off from 1,635

KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) expects the FBM KLCI, which ended Wednesday at its intra-day high of 1,635, could back off from its immediate resistance level of 1,635 on Thursday due to a lack of follow-through buying.

However, HDBSVR expected downside risk to be relatively limited supported by the underlying market resilience. On Wall Street, the key indices closed mixed, between -0.3% and +0.5% last night as sentiment was dented by poor corporate results and weak new homes sales. “Stocks that may come under the limelight on our local stock exchange today include IHH Healthcare, which would be included as a constituent of the FBM KLCI effective next Wednesday,” it said, adding MMC Corporation would be omitted as an index component stock.

As for Malaysia Airlines, media reports said the national airline was considering to revisit its joint venture with Australia's Qantas to boost its revenue.