HDBSVR sees KLCI staging recovery

KUALA LUMPUR: Hwang DBS Vickers Research expects the FBM KLCI, which fell 1.1% last week, to recover on Monday and head towards the 1,635 resistance.

It said on Monday that sentiment could be boosted by the sharp gains on Wall Street last Friday where the key US indices jumped between 1.5% and 2.2% at the closing bell lifted by hopes that the policymakers in the U.S. and Europe would act to boost their economies. "The positive vibes may spill on to our local bourse today. On the chart, the benchmark FBM KLCI, after a decline of 18.1 points or 1.1% last week, could recover towards the immediate resistance line of 1,635," it said. HDBSVR said among the stocks that will likely ride on the technical rebound include beaten-down index constituents such as Maxis, MMC Corporation and AirAsia.

"Meanwhile, MRCB is expected to bag a MRT contract valued at RM1bil sometime this week according to one local news report," it said.