It is going to be another dry and slow trading day on the Malaysian stock exchange given the dearth of material news flows on the corporate scene. Still, the benchmark FBM KLCI may seize the opportunity to inch up a bit more ahead after posting a marginal rise of 4.1-point yesterday. This comes as the latest quarterly financial results for SP Setia and Berjaya Sports Toto – announced last evening – were within expectations. Separately, with the impending inclusion of Nestle and omission of Parkson as a FBM KLCI constituent effective 21 Dec, there could be some portfolio adjustments by index-tracking funds although we reckon any reallocation would be minimal given their relatively small weight in the index calculations.
Meanwhile, Wall Street extended its rebound last night as major U.S. equity indices increased between 0.3% and 0.7% at the closing bell following a drop in jobless claims. Malaysia Research Team – 603-2711 2222 Refer to important disclosures at the end of this report.
source HWangDBS Research
