Malaysia’s KLCI to test resistance of 1,840

KUALA LUMUR: Hwang DBS Vickers Research (HDBSVR) expects Malaysia’s stock market to extend its technical rebound on Thursday on follow-though bargain hunting.

“From a technical perspective, the key FBM KLCI will probably recover further towards the immediate resistance line of 1,840 ahead,” it said.

HDBSVR said following Wednesday’s release of encouraging trade surplus statistics for November, investors may be looking forward to another positive macroeconomic report when the industrial production index (IPI) data is out around noon time.

It said a media poll projected that consensus was expecting a year-on-year growth rate of 2.5% for the IPI in November.

On the corporate front, Ire-tex could see trading interest after it proposed a multi-step corporate exercise involving a one-into-2.5 share split, a private placement of up to 11.9m new shares and a rights issue of ICULS with free warrants.

Lion Corporation could also be in focus after its managing director Tan Sri William Cheng withdrew an earlier offer to acquire the company’s entire outstanding bonds/debts/RCSLS for cash consideration of RM246mil.