HDBSVR sees KLCI giving up most of Wednesday’s gains

KUALA LUMPUR: Hwang DBS Vickers Research said external headwinds will likely pull down the Malaysian bourse’s performance on Thursday, June 23.

“The benchmark FBM KLCI will possibly surrender much of yesterday’s 6.6-point gain after being pushed up in the last few minutes of trading to close at an intra-day high of 1,567,” it said.

HDBSVR said Wall Street reacted adversely to the overnight outcome of the Federal Open Market Committee meeting.

Major US equity indices lost between 0.6% and 0.7% as the policymakers cut economic growth forecasts while keeping the federal funds rate unchanged and reiterating their stance to end the quantitative easing program this month as per schedule.

“Back home, trading interest is expected to be slow amid the weak overseas sentiment,” it said.

Stocks that may see a bit more action today include the Lion group of companies – namely Lion Corporation, Lion Diversified and Lion Industries – following a news report saying that it is looking to revamp and consolidate the steel business to pave the way for the entry of a strategic foreign partner.