27/12/2011 (Business Times) - Stocks likely to be in the limelight this week are Scan Associate, Sunway, TA Enterprise and financials such as CIMB and AMMB Holdings.

The Malaysian bourse could trend higher in the last shortened trading week of the year, with encouraging news out of the US and Europe and the home front helping to buoy the market.

Reuters reported that the Dow Jones Industrial Average rose to its highest in five months last Friday, on news that a potential US economic recovery could help offset the Eurozone debt woes.

The index finished up by 1.02 per cent or 124.35 points to 12,294 points.

While the US market observers are cautious about a seasonal rally taking place this week, on the home front, firmer commodity prices and the recently-announced Second Financial Sector Master Plan is expected to help move the market upward.

Malaysian crude palm oil futures rose to a near two-week high last Thursday as traders focused more on heavy rains potentially disrupting production rather than worry about the eurozone debt crisis eroding global economic growth.

The FBM KLCI Index closed two per cent higher last week to 1,496.15 points. Analysts see the FBM KLCI’s resistance level at the 1,499 to 1,533 levels, while its immediate downside support is at the 1,458 to 1,492 levels.

Stocks likely to be in the limelight this week are Scan Associate Bhd, Sunway Bhd, TA Enterprise Bhd and financial such as CIMB Bhd and AMMB Holdings Bhd.

Scan Associate announced a reverse takeover that would see a new controlling shareholder emerge last Friday, while Sunway announced that it had bagged a RM28 million job from Hap Seng Land Development Sdn Bhd.

Eastern & Oriental Bhd (E&O) and Sime Darby Bhd could also continue to be in the spotlight after a related legal suit was brought against the Securities Commission (SC).

Sime Darby, at the end of August, announced its plan to acquire a 30 per cent stake in E&O for RM766 million from three shareholders.

The SC had granted Sime Darby an exemption from having to hold a general offer for all the remaining shares it did not own in E&O.