Technical rebound

Our benchmark FBM KLCI recovered from a low of 1,423.47 during the morning session yesterday to close at 1,472.14 (-24.85pts). Technically speaking, the benchmark index is likely to showcase a technical rebound, pulling away from its immediate support level of 1,465.

Sentiments could be further boosted by the overnight gains in the Wall Street with the US key equity indices rebounded strongly between +4.0% and +5.3%, after the worst drop since Dec 2008. The Fed has vowed to keep interest rates near zero through mid-2013 which could be seen as a temporary respite for the regional markets today.

Back home, counters that are likely to garner increased trading interest today include: (a) Malaysia Airlines and AirAsia, after Khazanah agreed to swap 20.5% of its ownership in Malaysia Airlines for a 10% stake in AirAsia, and (b) Hartalega, following its best quarterly results with RM55m net profit which came better than expected. Meanwhile, industrial production statistics for June will be on tap later in the evening.