HDBSVR sees KLCI testing 1,580

KUALA LUMPUR: Hwang DBS Vickers Research
(HDBSVR) said the firmer overnight close on Wall Street could provide
buying support for Asian equities and it sees a possibility the FBM KLCI may rise to 1,580 on Friday.
It
said that key US stock market indices rose between 0.6% and 1.2%
overnight, underpinned by expectations that U.S. and European policy
makers would step in with additional economic stimulus measures.
"Still, in the run-up to Greece's election this Sunday, some investors
are expected to stay on the sideline until there is better clarity on
Greece's political implications on the eurozone's financial system.
"Back
home, riding on technical rebound, the benchmark FBM KLCI may rise
towards the immediate resistance barrier of 1,580," it said. HDBSVR
said amid the quiet market backdrop, stocks which could see trading
interest were Sime Darby, which plans to invest RM1.4bil over the next three years to grow its port operations in Weifang, China.
Ramunia could also attract attention after being awarded fabrication contracts from Shell worth RM178mil.
As for EP Manufacturing,
its proposed acquisition of Maju Expressway for RM1.7bil has apparently
hit a snag following delays in getting government approval.