Technical rebound on our Malaysian bourse today

Taking the cue from Wall Street, we will probably see a technical rebound on our Malaysian bourse today. The benchmark FBM KLCI – after a plunge of 39.1-point or 2.5% over the past seven days – may bounce up towards its immediate resistance level of 1,575 ahead.

This comes as major U.S. equity indices jumped between 1.6% and 2.2% at the closing bell last night. Essentially, investors’ confidence was lifted by news that an agreement among lawmakers could be nearing to resolve the U.S. government’s debt ceiling stalemate. Stocks that will likely garner added interest today include:
(a) DiGi, in anticipation of the release of its latest quarterly results this afternoon; and
(b) Unico-Desa Plantations, which has proposed a distribution of shares in subsidiary ELK-Desa Resources to all its shareholders by way of dividend-in-specie and a restricted offer for sale of the remaining shares in ELK-Desa Resources to its shareholders. ELK-Desa Resources – which is involved in the hire purchase business – will be pursuing a listing on the Main Market.