Hwang DBS: Post-window dressing effects may result in market softening

Hwang DBS: Post-window dressing effects may result in market softening
Business & Markets 2013
Written by theedgemalaysia.com
Monday, 01 July 2013 08:37

KUALA LUMPUR (July 1): Post-window dressing effects may result in the Malaysian bourse softening today as we enter the third quarter of the year, according to Hwang DBS Vickers Research.


In a report Monday, the research nevertheless said the benchmark FBM KLCI – which had jumped 44.9-point or 2.6% over the last three days – could consolidate its recent gains by hovering above the immediate support line of 1,750 ahead.


It said this followed a mixed performance on Wall Street last Friday.


Key US equity indices ended between flat and down 0.8% amid hopes that the Federal Reserve would not wind down its quantitative easing program anytime soon, it said.


“Among the stocks that will likely attract added interest today include:

(a) MMC, after it paid AUD130 million (approximately RM382 million) to acquire an Australian company that operates the largest wind farm in the Southern Hemisphere, Australia with a generation capacity of 420 MW;

(b) Integrated Logistics, which may become a cash company following the disposal of its subsidiaries in China and Hong Kong for approximately RM519 million cash (with the net consideration payable to be adjusted for the outstanding bank loans and inter-company debt, which would work out to be RM344 million on a proforma basis); and

(c) Hock Seng Lee, as it has bagged a building CONSTRUCTION [] job in Sarawak worth RM228 million,” it said.