HDBSVR sees Bursa Malaysia playing catch-up

KUALA LUMPUR (Nov 29): Hwang DBS Vickers Research (HDBSVR) said while Bursa Malaysia could play catch-up with key regional markets on Tuesday and following the strong overnight close on Wall Street.

It said on Tuesday that while Bursa Malaysia was closed on Monday for a public holiday, regional bourses mostly ended in positive territory with India’s benchmark index up 3.0%, China shares listed in Hong Kong added 2.3% and South Korea’s Kospi 2.2%.

Over on Wall Street, key US equity indices jumped between 2.6% and 3.5% last night following buoyant retail sales and hopes that the European leaders would act harder to resolve the region’s sovereign debt crisis.

“Consequently, the benchmark FBM KLCI could play catch-up today. After a plunge of 22.8-point or 1.6% last week, the bellwether is expected to stage a technical rebound towards the first resistance level of 1,445 ahead,” it said.

The positive market backdrop will probably lift large caps like Sime Darby and IJM Corporation, which have announced their latest quarterly results on Friday evening that came in within expectations.

“On the other hand, MRCB and Kinsteel may see selling pressures after reporting below par quarterly earnings,” it said.