KUALA LUMPUR: Hwang DBS Vickers Research said there sentiment across Asia may perk up on Thursday, Nov 4 after the US Federal Open Market Committee meeting last night.
Essentially, the U.S. policymakers – while leaving interest rates unchanged – have stated its intention to purchase a further US$600bn of longer-term Treasury securities by end-2Q11. This is slightly higher than market expectations, which then pushed up key equity indices on Wall Street by between 0.2% and 0.4% at the closing bell.
"Consequently, the benchmark FBM KLCI will probably show a slight positive bias ahead, making its way towards the resistance target of 1,525.
"Meanwhile, the international reserves report as at Oct 29 – to be out this evening – would give an update on the latest fund flows pattern following a sizeable fortnightly increase of US$4.8b in 2H of September and US$3.9 billion in 1H of October," it said.
Hwang DBS Vickers Research said in terms of corporate development, property counters may come under the limelight after Bank Negara Malaysia has imposed a loan-to-value cap of 70% for the third property purchase.
Later in the evening, the interest will be on a joint announcement to be made by Sunrise and UEM Land regarding a possible merger exercise.
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