HDBSVR sees KLCI trading lower after Wall Street decline

KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) sees stocks on Bursa Malaysia trading slightly downwards on Thursday after the overnight fall on Wall Street.
US
major indices fell between 0.3% and 0.7% overnight as the Federal
Reserve's pledge to provide additional support for the economy
disappointed investors anticipating a more definitive sign of further
monetary easing.
Another factor was that data showed
unemployment rate in the Eurozone hitting a record high of 11.2% in
June, with manufacturing also contracting in July. "This could pave the
way for our local bourse to trade slightly downwards today, with the
immediate support level seen at 1,610. We also think that market
performance today could be hindered by a lack of fresh news flow," said
the research house. HDBSVR said amid the quiet market backdrop, stocks
which could attract some trading interest included Malaysian Resources Corp, with speculation rife on a possible share swap deal with Nusa Gapurna Development.
Also in focus could be United Plantations, which is investing US$32mil (RM100mil) with Oleon NV to put up a new plant to produce food emulsifiers in Klang.
Meanwhile, KPJ Healthcare had proposed to acquire the remaining 49% interest in SMC Healthcare which it does not own for RM54.9mil.