Our benchmark FBM KLCI is likely to continue trading on an upward bias, extending its yesterday’s gain of merely 3-index points. This will be supported by the futures market which saw its spot month futures trading at 5-index points above the cash market.
Much of the focus today would be on the pay-television operator, Astro All Asia Networks plc (Astro). Yesterday, major shareholders of Astro and parties acting-in-concert (PAC) have offered to take Astro private at RM4.30/share cash. The offer is at a 74 sen or 20.8% premium to the RM3.56 pre-suspension price. Astro’s shares will resume trading when market opens at 9.00am today. We believe there could be positive share price reaction to this offer, likely towards the offer price of RM4.30/share.
The U.S. market continued to march forward, ended 0.4% to 0.6% higher at the closing bell last night. Essentially, the constructive investor sentiments were built over an inflation report which showed inflation remains subdued amid an improving economy. This was also due to the fact that Federal Reserve kept its key interest rate unchanged post the FOMC meeting.
Our benchmark FBM KLCI is likely to continue trading on an upward bias, extending its yesterday’s gain of merely 3-index points. This will be supported by the futures market which saw its spot month futures trading at 5-index points above the cash market.
source: HWangDBS
