HDBSVR sees KLCI giving up part of Monday’s gains

KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) expects the FBM KLCI, which surged in the final minutes of trading on Monday to close 7.4-point higher at 1,632, could give up part of the gains.

In its market outlook on Tuesday it said the KLCI could struggle to overcome the immediate resistance barrier of 1,635 for the time being. Meanwhile, there was no visible lead coming in from Wall Street last night. Major U.S. equity indices ended between flat and minus 0.4% amid slowing economic concerns. Counters that could attract added interest on Bursa Malaysia are Bandar Raya, which has announced that its major shareholder is in the midst of securing financing for a potential takeover offer of its shares (at an indicative price of RM2.90 each) and warrants (at RM1.80 apiece).

Also in focus could be Lafarge MCement, as its executive director was quoted by a local paper saying that it would be raising the selling price of its cement effective Aug 1.

Meanwhile, Gabungan AQRS would make its debut on the Main Market. OSK Research had accorded a fair value of RM1.37 for the shares, based on 9.0 times FY20113 price-to-earnings ratio (PER).

The research house said it liked AQRS due to its decent orderbook strength, ambition to take its industrial building system to Sabah and Sarawak, as well as its potential to bag public-private partnership initiatives which would provide recurring earnings.