JF Apex Research: "Over a medium to long term outlook, we are cautious on the FBM KLCI performance as it still treads below the 100- and 200-day moving averages at 1,650 and 1,700 points respectively."
KUALA LUMPUR: JF Apex Research expects Bermaz Auto
, UMW Oil and Gas and Spritzer to be among the stocks to watch on Wednesday after their corporate news.
The research house said Bermaz Auto’s net profit fell 38.9% on-year to RM25.1mil in its 3QFY17, as affected by softer domestic sales while supply constraints and competition in the Philippines affected sales.
Bermaz was also affected by the weaker performance of its associated companies and higher vehicle cost because of a weak ringgit.
UMW Oil & Gas has bagged a contract from British oilfield company Petrofac (Malaysia-PM304) Ltd to provide a jack-up drilling rig, specifically UMW Naga 5, to drill two wells;
Meanwhile, Spritzer announced that FMR LLC, part of United States-based Fidelity Investments, has emerged as a substantial shareholder with a 5.07% stake.
Overnight on Wall Street, US stocks closed slightly lower Tuesday, ahead of a likely interest rate hike, as energy stocks fell.
European markets ended lower as investors digested political events across the continent and awaited a probable interest rate hike by the US Federal Reserve.
On the local market, the FBM KLCI eked out a marginal gain of 0.55 point end Tuesday at 1,722.47.
“We expect the local benchmark index continues to consolidate below 1,730 on the lack of catalysts,” said JF Apex Research.
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