It is going to be a test of resilience for our Malaysian bourse today

It is going to be a test of resilience for our Malaysian bourse today. We reckon the benchmark FBM KLCI will probably slip towards the immediate support mark of 1,575 ahead.

This follows an overnight slump on Wall Street. In particular, major U.S. equity indices plunged between 1.2% and 2.0% at the closing bell on rising concerns that the debt woes in Europe as well as U.S. could spread. Hoping to buck the bearish market sentiment today are stocks like Kencana Petroleum and SapuraCrest, following a proposal to merge their businesses made by a special purpose vehicle (SPV) via the acquisition of the assets and liabilities of both companies at a respective price of:
(i) RM3.00 per Kencana Petroleum share to be satisfied by RM0.486 in cash and 1.26 new SPV shares per Kencana Petroleum share; and
(ii) RM4.60 per SapuraCrest share to be satisfied by RM0.685 in cash and 1.96 new SPV shares per SapuraCrest share.

From HWangDBS