KUALA LUMPUR: Hwang DBS Vickers Research expects profit-taking activity may persist on Bursa Malaysia on Friday, July 16  following its slide on Thursday, which halted a seven-day winning streak.

"The benchmark FBM KLCI – coming under renewed selling pressures – could pull back by a couple of index points more," it said in its market outlook.

The overall market performance will also depend on investors’ reaction to the price hikes announcement on petrol, gas and sugar.

While the subsidies cut may be argued as essential to narrow the government’s budget deficit, there will be concerns that the price increases – considering their relatively moderate quantum – could signal a gradual rise in these items going forward, which will then push up inflationary expectations.

Separately, in terms of individual share price actions, Hwang DBS Vickers Research will see incremental interest in: (a) Time Engineering and Faber, amid a business daily report speculating that their major shareholder UEM Group would be stepping up its asset disposal programme; (b) Capital Mall Malaysia Trust, making its listing debut; and (c) Bursa Malaysia, which will be releasing its 2Q10 financial results around noon time.