KUALA LUMPUR (Oct 2): The FBM KLCI is expected to commence the fourth quarter of 2017 today on a cautious note with support pegged at 1,750, given still nervy local investor sentiment, and the outflow of foreign funds last week.

The dollar was poised for its strongest week of the year on Friday, while world stock markets climbed back near record-high levels on the last trading day of the quarter, according to Reuters.

On Wall Street, the S&P 500 and Nasdaq minted all-time highs, while European stock markets also gained, it said.

The Dow Jones Industrial Average rose 23.89 points, or 0.11 percent, to 22,405.09, the S&P 500 gained 9.3 points, or 0.37 percent, to 2,519.36 and the Nasdaq Composite added 42.51 points, or 0.66 percent, to 6,495.96, said Reuters.

AllianceDBS Research in its evening edition last Friday said that dampened by the down close in the preceding day, the FBM KLCI had on Sept 29 broken below the 1,756 level to reach an intraday low of 1,753 as market participants continued to play on the selling side in anticipation of a lower market.

It said under the persistent selling interest, the benchmark index was in the red throughout the trading sessions before settling near the day’s low at 1,755.58 (down 2.48 points or 0.14%).

“In the broader market, gainers outnumbered losers with 419 stocks ending higher and 418 stocks finishing lower. That gave a market breadth of 1.002 indicating the bulls were in better control with the bears closely matched,” it said.

AllianceDBS Research said the market continued to be in a losing streak on Sept 29 with the benchmark index piercing through the 1,756 support.

“While a buying attempt to lift the market was made on the opening bell, there was no follow through buying interest to keep the market afloat.

“As soon as the last buying order was filled at 1,760.25, those market participants that missed the selling opportunity at 1,760.25 decided to chase the next available buyers in line.

“This pushed the benchmark index down to a low of 1,753. Sellers continued to be on the dominant side over the last 8 days,” it said.

The research house said this could be seen from the lower lows and lower highs.

It said following the down close on Sept 29, there should be selling attempt again with immediate support pegged at 1,750.     

“The analysis of overall market action on Sept 29 revealed that buying power was weaker than selling pressure.

“As such, the FBM KLCI would likely trade below the 1,753 level on Oct 2,” said AlllianceDBS Research.

Based on corporate announcements and news flow last Friday, stocks in focus on today may include: Trive Property Group Bhd, Dayang Enterprise Holdings Bhd, Serba Dinamik Holdings Bhd, Maxwell International Holdings Bhd, DRB-Hicom Bhd, Astino Bhd, Borneo Oil Bhd, Cypark Resources Bhd, Talam Transform Bhd, LB Aluminium Bhd and Prolexus Bhd.