KUALA LUMPUR (Nov 3): The FBM KLCI is expected to continue with its lacklustre run today with immediate support remaining at 1,740.

World stock markets edged higher on Thursday, with Wall Street up slightly and the U.S. dollar modestly weaker after details of a Republican tax plan were released and the nomination of Jerome Powell as the new head of the Federal Reserve, according to Reuters.

The Republican tax plan called for broad changes to the U.S. tax code, including slashing the corporate tax rate and reducing the number of tax brackets for individuals, it said.

The Dow Jones Industrial Average rose 81.25 points, or 0.35 percent, to 23,516.26, the S&P 500 gained 0.49 points, or 0.02 percent, to 2,579.85 and the Nasdaq Composite dropped 1.59 points, or 0.02 percent, to 6,714.94, said Reuters.

AllianceDBS Research in its evening edition Thursday said that dampened by the down close in the preceding day, the FBM KLCI had on Nov 2 dipped below the 1,740 level to a low of 1,739.80 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 most of the trading sessions before settling near the day’s low at 1,741.05 (down 2.88 points or 0.17%).

“In the broader market, losers outnumbered gainers with 518 stocks ending lower and 339 stocks finishing higher. That gave a market breadth of 0.65 indicating the bears were in control,” it said.

AllianceDBS Research said the market registered a lower low on Nov 2 with the benchmark index touching a low of 1,739.80.

“Again, buying attempt was made after the opening bell to lift the market higher.

“However, weak follow through buying pressure in the area of 1,747 plus the absence of positive news flow provided an opportunity for the aggressive market participants to sell.

“Of course, part of the reason behind this selling action was resulted from the frustration created when market participants jumped in to establish stock positions on Oct 27 in expectation of market to continue moving up,” it said.

The research house said following the down close on Nov 2, there should be selling attempt again with immediate support remaining at 1,740.

“The analysis of overall market action on Nov 2 revealed that buying power was weaker than selling pressure.

“As such, the FBM KLCI would likely trade below the 1,739.80 level on Nov 3,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, stocks in focus today may include: Hong Leong Financial Group Bhd, Hong Leong Bank Bhd, Sasbadi Holdings Bhd, UEM Edgenta Bhd, ECS ICT Bhd, Kronologi Asia Bhd, Digi.Com Bhd, Ranhill Holdings Bhd, Rev Asia Bhd, Luster Industries Bhd, Cuscapi Bhd, G Neptune Bhd and Daya Materials Bhd.