FBM KLCI may swing sideways with a downward bias ahead

After rising as much as 1.9%-2.4% initially, major U.S. equity indices lost steam subsequently to finish between flat and marginally up (0.3%) last night. This pedestrian Wall Street performance would likely prompt Asian investors to be cautious today.

Sentiment on our Malaysian bourse could be affected too. The benchmark FBM KLCI may swing sideways with a downward bias ahead. Immediate support level is seen at 1,465. Against the sluggish broad market backdrop, investors are expected to react to individual corporate developments such as:

1. Sunway as its shares will be re-quoted today following the merger exercise between Sunway Holdings and Sunway City;
2. KNM, after reporting below consensus earnings in 2Q11; and
3. Axiata, which is due to announce its latest quarterly results during lunch time.

Meanwhile, more financial announcements – from the likes of CIMB, MAS, AirAsia and Parkson – are scheduled to be made after market hours today.