JF Apex Research: "Over a medium to long term outlook, we are cautious on the FBM KLCI performance as it still treads below the 100- and 200-day moving averages at 1,650 and 1,700 points respectively."
KUALA LUMPUR: JF Apex Research expects Favelle Favco, Vivocom, Gunung Capital and Wah Seong to be among the stocks which could attract some trading interest on Wednesday after their corporate news.
It pointed out Favelle Favco secured RM64mil worth of orders in December 2016 to supply tower cranes to ALE UK Holdings, Marr Contracting Pty Ltd, TES Inc and Stride High Pty Ltd.
As for Vivocom, it won two contracts worth RM71.3mil for construction works.
Gunung Capital secured a RM43.9mil contract from the Defence Ministry to provide bus transportation to and from nominated schools for the children of the armed forces personnel nationwide.
Wah Seong has teamed up with Hong Kong firm Lesso Home Service Holdings Ltd to sell products and services via an online platform facilitated by the latter.
The joint venture will see it sourcing products and services, including but not limited to building materials, architectural products and home furnishing goods from China.
Overnight on Wall Street, US markets rose on the first trading day of the year led by telecoms but came off intra-day highs after oil prices pared gains.
Earlier, European stocks ended higher following encouraging economic data from Europe and China.
On the local market, the FBM KLCI lost 6.20 points to 1,635.53 as profit taking kicked in following last week's year-end window dressing.
“Following the positive performance in the US and Europe, the KLCI could climb and retest its resistance of 1,645,” it said.
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