KUALA LUMPUR: Stocks on Bursa Malaysia could inch up on Monday, Aug 2 ahead with its benchmark FBM KLCI possibly making its way towards the immediate resistance target of 1,375, says Hwang DBS Vickers Research (HDBSVR).

'Likely to give the bellwether a head start today is Tanjong plc following a cash offer to privatize the conglomerate at RM21.80 per share, which represents a 22% premium on its last traded price.

'Assuming the stock (which carries an existing weight factor of 1.3%) jumps to RM21.15 (or 3% below the offer price) when trading resumes this morning, the FBM KLCI is expected to get an instantaneous lift of 3.2-index point,' it said.

HDBSVR said riding on the current wave of corporate exercises, we may also see increased trading interest in:
a) E O in reaction to a media report saying that its major shareholder may take the company private;
b) MPHB, after a news article speculating that the company is looking to re-list Magnum by offering Magnum shares to its existing shareholders.