KUALA LUMPUR: JF Apex Research expects Alam Maritim Resources Bhd , KNM Group Bhd , Protasco Bhd and Zelan Bhd to be among the stocks to watch on Tuesday.
Alam Maritim has secured an RM40mil four-year contract to provide underwater inspection services for Carigali Hess Operating Co Sdn Bhd facilities.
KNM has launched arbitration proceedings against Lukoil Uzbekistan Operating Company LLC for over US$96mil in unpaid works it carried out as a contractor in gas-condensate fields in Uzbekistan since Dec 3, 2010.
Protasco has filed a law suit against its former sub-contractor Kuasatek (M) Sdn Bhd for a breach of contract.
Zelan has launched arbitration proceedings against NRY Architects for as much as RM305.4mil over the latter’s breach of contract over the construction of buildings for the International Islamic University Malaysia (IIUM) in Kuantan.
Overnight, US markets rose after reversing intraday losses led by technology counters.
The Dow Jones Industrial Average closed 200.64 points higher at 25,650.88 while the S&P 500 gained 1.47% to end the day at 2,783.30.
European stocks also climbed ahead of a key Brexit vote.
“Following the positive performance in the US and Europe, the FBM KLCI could stage a rebound with support at 1,655 points,” JF Apex said.
The research house said the technical indicators were negative with the RSI falling towards the oversold zone while the MACD crossed below its signal line.
“Last month, the index climbed above the 100-day moving average but failed to breach the 200-day moving average and corrected downwards.
“The recent gap-down broke the 50-day moving average and could decline further towards the support of 1,655 points,” JF Apex said.