HDBSVR sees more selling pressure ahead

KUALA LUMPUR: Hwang DBS Vickers Research said continuing from where they left off last week, the bears would be making their presence felt across the global financial markets on Monday, Aug 8.

“This follows a U.S. sovereign credit rating downgrade by S&P over the weekend. Reflecting the nervous investors’ sentiment, the DJIA futures contract plunged further, hovering at a 290-point discount to the spot rate this morning,” it said.

HDBSVR said there is no escape for our Malaysian bourse too. Its benchmark FBM KLCI is expected to drop further, possibly towards the support level of 1,495 on the chart.

Amid the jittery backdrop, investors will rather stay on the sidelines ahead. “Two counters, nevertheless, may still attract trading interest today. Malaysian Airline System and AirAsia shares will come under the spotlight in response to media reports that a potential share swap between the substantial shareholders of the two aviation companies could be in the works,” it said.