HDBSVR sees selling pressure picking up on KLCI

KUALA LUMPUR (Dec 9): Hwang DBS Vickers Research expected regional
markets to come under pressure on Friday after the overnight fall on
Wall Street.

It said key U.S. stock indices lost between 1.6% and 2.1% at the
closing bell amid news that no major progress is expected to be made by
European leaders at an ongoing meeting to resolve the region’s sovereign
debt woes.

“This could take a knock on sentiment across Asia as investors would
probably want to sell before the European summit ends later today.

“Back home, the benchmark FBM KLCI may back off from the
support-turned-resistance level of 1,475, possibly sliding towards the
next support line of 1,445,” it said.

HDBSVR said counters that may be of interest on Friday include
AirAsia, Bumi Armada and UEM Land, which are set to replace Gamuda, MISC
and PLUS as the FBM KLCI component stocks.

“And hoping to buck the weak market trend is Kencana Petroleum, after
it secured a contract worth RM1 billion to fabricate and assemble
structures and components for a liquefied natural gas processing
facility in Australia,” it said.