Market Preview From HWangDBS (20 APR 2011)

After testing and bouncing up from the 39-day moving average line yesterday, we expect the key FBM KLCI to show an upward bias today. Technically speaking, the benchmark index could climb towards the first resistance line of 1,530. There was an overnight rebound on Wall Street too. Major U.S. equity indices rose between 0.4% and 0.6% at the closing bell as sentiment improved on the back of better housing starts data and corporate earnings momentum. Among the stocks that may attract added interest today include:

1. DRB-Hicom, after a news report said it has won a bid to take over the controlling stake in Pos Malaysia (at around RM3.60 per share) with an agreement likely to be signed early next week;
2. Berjaya Corp, which has confirmed that Kim Eng has approached its management to explore the possibility of acquiring a 100% stake (instead of 70%) in Berjaya Corp’s stockbroking arm; and
3. Emas Kiara, following its announcement to pay a special tax exempt dividend per share of 12 sen (translating to a generous yield of 16.3% based on its last done price of RM0.735).