KUALA LUMPUR (Sept 6): The FBM KLCI is expected to continue its lacklustre start to September today, in line with the weaker overnight close at Wall Street and most global markets, with immediate support at 1,756.

Wall Street stocks fell on Tuesday, Treasury yields recorded their steepest one-day drop since May and the dollar slipped as investors shied away from risk following North Korea's biggest nuclear bomb test yet, according to Reuters.

The drop in major U.S. markets, which had been closed for Monday's Labor Day holiday, followed that day's global sell-off amid international condemnation of Sunday's nuclear test, it said.

The Dow Jones Industrial Average fell 234.25 points, or 1.07 percent, to 21,753.31, the S&P 500 lost 18.7 points, or 0.76 percent, to 2,457.85 and the Nasdaq Composite dropped 59.76 points, or 0.93 percent, to 6,375.57.

Meanwhile, MSCI's gauge of stocks across the globe shed 0.37 percent, said Reuters.

AllianceDBS Research in its evening edition Tuesday said that led by the up close in the previous market day, the FBM KLCI had on Sept  5 opened the day on a positive note at 1,785.69.

However, it said the benchmark index reversed its position to go down south in the absence of follow through buying interest at 1,7,85.69.

It said under the persistent selling pressure, the benchmark index fell to a low of 1,766.05 before settling off the day’s low at 1,769.63 (down 3.53 points or 0.20%).

“In the broader market, losers outnumbered gainers with 596 stocks ending lower and 364 stocks finishing higher. That gave a market breadth of 0.61 indicating the bears were in control,” it said.

AllianceDBS Research said the market saw sudden buying interest on opening bell to lift the benchmark index above the 1,782 hurdle to reach a high of 1,785.69, but the market failed to advance further.

“This is because the day’s high of 1,785.69 had placed the benchmark index inside the resistance zone, 1782 – 1,788.

“Market participants apparently did not want to take the risk of buying given the high risk market setup and low probability of profit opportunity as the market had already moved into a selling supply area.

“Immediately after the opening bell, the market quickly fell back below the 1,782 level to the low of 1,766.05,” it said.

The research house said the strong upswing on Aug 30 followed by a strong downswing in the subsequent market day on Sept 5 indicated a strong disagreement on immediate market direction among the market participants.

It said following the down close on Sept 5, there should be selling attempt again with immediate support at 1,756.

“The analysis of overall market action on Sept 5 revealed that buying power was weaker than selling pressure.

“As such, the FBM KLCI would likely trade below the 1,766.05 level on Sept 6,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, stocks in focus today may include: Felda Global Ventures Holdings Bhd, Guan Chong Bhd, LBS Bina Group Bhd, 7-Eleven Malaysia Holdings Bhd, Prestariang Bhd, UEM Edgenta Bhd, Three-A Resources Bhd, Kim Hin Industry Bhd, TRC Synergy Bhd and Malaysia Airports Holdings Bhd.