KUALA LUMPUR (Feb 12): The FBM KLCI is lilkely to extend its losses today on weaker global sentiment as crude oil prices dropped and worries over Greece’s debt woes re-emerged.
At the global markets, an advance in U.S. stocks halted and European shares slipped on Wednesday on investor worries over the outcome of euro zone ministerial meetings about Greece's debt crisis, while oil prices dropped for a second day on more signs of oversupply, according to Reuters.
Meanwhile, the S&P 500 index finished unchanged on Wednesday as investors were reluctant to make big bets while they waited for the outcomes of major talks involving Greece and Ukraine, but Apple helped boost the Nasdaq after an activist investor's bullish comments, it said.
AllianceDBS Research in ite evening edition Wednesday said that dampened by the down close in the preceding day, the FBM KLCI had on Feb 11 traded lower to reach an intraday low of 1,790.80 as market participants chose to play a selling game in anticipation of a lower market.
It said that in the absence of stronger buying interest, the benchmark index was in the red throughout most of the trading sessions before settling off the day’s low at 1,798.95 (- 12.17 , - 0.67%).
“In the broader market, losers outnumbered gainers with 508 stocks ending lower and 321 stocks finishing higher. That gave a market breadth of 0.63 indicating the bears were in control,” it said.
AllianceDBS Research said having found no follow through buying interest to carry the benchmark index much higher after the upside gap on Feb 6, the market came under selling pressure on Feb 11 to fill the upside gap.
It said following the down close on Feb 11, the market was expected to test the support at 1,796 again.
The research house said a fall below 1,796 would put pressure on the market down to the subsequent support at 1,781.
Indicator wise, the MACD is still above the 9-day moving average line, it said.
“The analysis of overall market action on Feb 11 revealed that buying power was weaker than selling pressure.
“As such, the FBM KLCI would likely trade below the 1,790.80 level on Feb 12,” said AllianceDBS Research.