Malaysian bourse might just extend its upward trend today

With the underlying momentum still looking positive, our Malaysian bourse might just extend its upward trend today. The benchmark FBM KLCI – which closed at a new record high yesterday – could be making its way towards the immediate resistance level of 1,605 ahead.

Meanwhile, investors will be keeping their eyes on Bank Negara Malaysia’s monetary policy committee meeting to be held this evening. In a media survey, more economists are expecting the policymakers to raise the overnight policy rate (by 0.25%) as well as the statutory reserve requirement. This comes on the back of China’s announcement of an interest rate hike yesterday.

On the corporate front, of interest would be:

1. Boustead Holdings, which has proposed a distribution of Pharmaniaga shares (via dividend-in-specie) and a restricted offer for sale of Pharmaniaga shares to its shareholders, as well as a 1-for-10 bonus issue; and
2. Allianz Malaysia and MNRB, following their mutual termination of negotiation for Allianz to acquire an insurance unit in MNRB.

From HwangDBS