Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 6): The FBM KLCI is expected to remain muted today as overall investor sentiment could stay tepid following sellers leading buyers since last week.

World stock markets advanced for a seventh straight session and the dollar strengthened on Friday, buoyed by a round of U.S. economic data highlighted by the monthly payrolls report, according to Reuters.

Wall Street also received a boost from a 2.61 percent gain in shares of Apple Inc, a day after the iPhone maker reported quarterly results, it said.

The Dow Jones Industrial Average rose 22.96 points, or 0.1 percent, to 23,539.22, the S&P 500 gained 7.99 points, or 0.31 percent, to 2,587.84 and the Nasdaq Composite added 49.49 points, or 0.74 percent, to 6,764.44, 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 Nov 3 dipped below the 1,740 level to a low of 1,739.60 as market participants continued to play on the selling side in anticipation of a 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 1,740.93 (down 0.12  points or 0.01%).

“In the broader market, losers outnumbered gainers with 483 stocks ending lower and 337 stocks finishing higher. That gave a market breadth of 0.69 indicating the bears were in control,” it said.

AllianceDBS Research said the market made a lower low again on Nov 3 with the benchmark index dipping below the 1,740 level for 2 consecutive days on an intraday basis.

“However, the benchmark index did not go far down.

“This can be seen from the day’s low of 1,739.60.

“Market participants somehow turned cautious in their selling game for fear of sudden reversal when the 1,740 level was violated on the downside, because the market decline over the past 5 market days has almost erased the market gains recorded on Oct 27,” it said.

The research house said thus, an ability on the part of the market to stay supportive in the area of 1,740 would help to strengthen a small base.

It said following the up close on Nov 3, there should still be selling attempt again.

“The analysis of overall market action on Nov 3 revealed that buying power was weaker than selling pressure.

“As such, the FBM KLCI would likely trade below the 1,739.60 level on Nov 6,” said AllianceDBS Research.

Based on corporate announcements and news flow today, stocks in focus on Monday (Nov 6) may include: Top Glove Corp Bhd, Jaycorp Bhd, Lafarge Malaysia Bhd, SLP Resources Bhd, Hong Leong Bank Bhd, Cocoaland Holdings Bhd, Air Asia Bhd, MISC Bhd, Daya Materials Bhd, Malaysia Building Society Bhd, Maxis Bhd and Lay Hong Bhd.

 

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