Trading ideas: DNeX, Eita Resources, London Biscuits


KUALA LUMPUR: Dagang Nexchange Bhd (DNeX), Eita Resources Bhd and London Biscuits Bhd are among the stocks to watch on Wednesday, according to JF Apex Research.


The research house said DNeX has signed a contract to provide solid expandable tubulars to the North Malay Basin gas development for US$5mil.


Eita Resources has bagged a contract form Tenaga Nasional Bhd for a 132kV double circuit underground cable project in Ampang worth RM56.36mil.


London Biscuits has proposed the issuance of one bonus share for every four existing shares held to reward shareholders.  


Meanwhile, US markets came off intra-day lows but still ended lower due to disappointing corporate earnings.


Earlier, European stocks tumbled amid quarterly results, concerns over Italy's budget and diplomatic tension in Saudi Arabia.


“Following the bearish performance in the US and Europe, the FBM KLCI could extend its selldown towards the support of 1,660 points,” JF Apex said.


The research house said technical indicators for the FBM KLCI was negative with the RSI falling into the oversold zone while the MACD was trending lower below its signal line.


“This month’s selldown broke the 100-day moving average. Yesterday’s decline broke the support of 1,700 points and the next support is seen at 1,660 points,” JF Apex said.


Analyst Reports , DNeX , Eita