KUALA LUMPUR: Key regional markets are expected to turn cautious, including Bursa Malaysia, on Wednesday, April 7 after the lacklustre overnight close on Wall Street.
The S&P 500 and Nasdaq rose modestly on Tuesday, as the banking sector got a lift from positive analyst comments, while minutes from the Federal Reserve's last meeting eased concern over rising rates, according to Reuters.
The Dow Jones industrial average eased 3.56 points, or 0.03 percent, to finish at 10,969.99. But the Standard & Poor's 500 Index added 2.00 points, or 0.17 percent, to 1,189.44. The Nasdaq Composite Index rose 7.28 points, or 0.30 percent, to 2,436.81.
Meanwhile, global oil demand growth this year is expected to be slightly lower than previously forecast as weaker European consumption has overshadowed higher Asian, namely Chinese, demand, the U.S. Energy Information Administration said on Tuesday, April 6.
In its latest forecast, the EIA said world petroleum consumption this year will rise by nearly 1.5 million barrels per day, 10,000 bpd lower than its estimate last month, from 2009's total to 85.5 million bpd this year.
At Bursa Malaysia, the FBM KLCI futures are almost unchanged, reflecting the cautious sentiment while crude palm oil futures closed lower on Tuesday.
Stocks to watch are Iris Corp Bhd, Pos Malaysia Bhd, plantation stocks, banks and Tenaga Nasional Bhd.
Iris Corp’s unit Iris Information Technology Systems Sdn Bhd accepted a contract from Syarikat Prasarana Negara Berhad to design, manufacture, install, test, and commission and warranty the automatic fare collection system for Kelana Jaya light rail transit line and Ampang LRT line.
The contract price for the works in relation to the project shall not exceed RM115.21 million.
Pos Malaysia, which has been in the limelight due to the looming sale of Khazanah Nasional’s 32% stake in it, will raise the domestic postal rate effective July 1, its first price revision in 18 years as a corporatised body as it grapples with declining sales and narrowing margins.
Tenaga may continue to see trading interest after its recent upgrade by analysts over the positive outlook for the power company.
Petra Perdana and Petra Energy may continue to see trading interest, but there could be some profit taking after the rally on Tuesday. CIMB had maintained a Buy on Petra Perdana and raised its sum-of-parts target price from RM1.82 to RM2.
It said factors that could catalyse the stock include a more dynamic board, delivery of new vessels, and improved vessel utilisation rate.
In a step towards penetrating high-end auto market in Asia-Pacific, DRB-Hicom Bhd has teamed up with UK-based Potenza Sports Car Ltd to produce sports car, including electric and hybrid models, in Malaysia.
DIS Technology Holdings Bhd (DIST), which has been hit by RM131.33 million fraud, has defaulted on its banking facilities amounting to RM21.03 million due and owing as of April 6.