KUALA LUMPUR (May 2): The FBM KLCI is expected to trend higher today with the support zone seen between 1,856 and 1,860 on sustained buying momentum.

The dollar broke into positive territory for the year and U.S. bond yields inched higher again on Tuesday as the recent rise in oil prices fueled expectations the Federal Reserve could flag more interest rate hikes at its policy meeting this week, according to Reuters.

The Dow and S&P 500 were lower in late afternoon trading as the latest batch of earnings from companies such as Pfizer and Tapestry, formerly Coach, disappointed investors, and as energy shares fell, it said.

The Dow Jones Industrial Average fell 153.05 points, or 0.63 percent, to 24,010.1, the S&P 500 lost 3.5 points, or 0.13 percent, to 2,644.55 and the Nasdaq Composite added 35.32 points, or 0.5 percent, to 7,101.59, said Reuters.

AllianceDBS Research in ite evening edition Monday said that led by last Friday’s up close, the FBM KLCI had on April 30 traded higher to 1,873.39 as market participants chose to stage a follow through buying interest.

It said under the persistent buying interest, the benchmark index was in the green throughout most of the trading sessions before settling at 1,870.37 (up 6.90 points or 0.37%).

“In the broader market, losers outnumbered gainers with 411 stocks ending lower and 401 stocks finishing higher. That gave a market breadth of 0.97 indicating the bears were in control with the bulls closely matched,” it said.

AllianceDBS Research said the market saw follow through buying support on the last market day of April 2018 with the benchmark index overcoming the 1,867 hurdle to reach a high of 1,873.39.

“Given a choice to trade the market, market participants were seen more willing to play on the buying side.

“The crossover of the 1,867 level was viewed as a positive market development in the coming few days because there was no strong selling interest seen earlier to push the market down below the 1,860.25.

“The inability of the benchmark index to go lower than 1,860.25 somehow prompted risk taking market participants to establish stock position,” it said.

The research house said this had helped to lift the benchmark index into the 1,870 zone.

It said following the up close on April 30, there should be buying attempt with support zone seen between 1,856 and 1,860.

“The analysis of overall market action on April 30 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,873.39 level on May 2,” said AllianceDBS Research.

Based on corporate announcements and news flow on Monday, companies in focus today may include the following: Lotte Chemical Titan Holding Bhd, Luxchem Corp Bhd, MBM Resources Bhd, UMW Holdings Bhd, Guocoland (M) Bhd, Malaysia Airports Holdings Bhd, AirAsia X Bhd, Bintulu Port Holdings Bhd, Censof Holdings Bhd, Westports Holdings Bhd, MISC Bhd, TMC Life Sciences Bhd, Ire-Tax Corp Bhd, Yinson Holdings Bhd, TH Heavy Engineering Bhd, Chin Teck Plantations Bhd and Tomypak Holdings Bhd.