HDBSVR sees KLCI staging technical rebound

KUALA LUMPUR: Hwang DBS Vickers Research expects the FBM KLCI to stage a technical rebound on Friday after the European Central Bank's announcement of a new program to buy an unlimited amount of the sovereign bonds of eurozone countries.
Key stock indices jumped across Europe and the US (up between 1.9% and 2.2% on Wall Street) on Thursday.
"This
may pave the way for our Malaysian bourse to stage a technical rebound
today. The benchmark KLCI - after falling 36.1-point or 2.2% in two
days amid concerns of a possible credit rating downgrade warning by
S&P and an upcoming general election jitters - could recover
towards the support-turned-resistance mark of 1,635," it said.
HDBSVR
said stocks that will likely be of added interest include WCT, which
has proposed a bonus issue of three shares for every 20 existing shares
and one free warrant for every 5 existing shares.
Also in focus could be KNM,
after unveiling its plan to list its wholly-owned subsidiary Borsig on
the Singapore stock exchange next year at an indicative valuation range
of RM1.8bil to RM1.9bil.
Benalec Holdings
could attract interest as its subsidiaries have entered into
development agreements with the Johor state government to undertake
reclamation works over a gross area of about 5,245 acres and develop
the project land into a petrochemical hub in southern Johor.