KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) expects the FBM KLCI to face renewed downward pressure on Tuesday following the weaker overnight close on Wall Street.
The key US indices slid between 0.3% and 0.5% at the closing bell as sentiment was affected by weak manufacturing report and slow progress in the US Congress budget negotiations. "Following which, we reckon the benchmark FBM KLCI could face renewed downward pressures, possibly testing the psychological support mark of 1,600 ahead. In essence, trading activity - which came in at just 729 million shares yesterday - may remain slow in view of a dearth of fresh market developments," it said. HDBSVR said against the quiet market backdrop, there may be slightly more interest in stocks like RHB Capital on news report it would strike a deal soon to acquire a 40% stake in Indonesia's PT Mestika Benua Mas.
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