Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Sept 27): The FBM KLCI is expected to extend its losses today with immediate support at 1,756, in line with the overnight fall at most global markets.

September has been a less than impressive month for the local bourse, with the benchmark index down 7.57 points this month so far since August 30, and also recorded foreigners selling more than RM400 million in Malaysian equity last week.

A gauge of world stocks fell on Tuesday and the euro dropped to its lowest level in about a month as investors pulled back from trades that have worked for most of 2017 in the face of continued political uncertainty around the globe, according to Reuters.

The S&P 500 finished little changed as U.S. tech stocks rebounded from their sharpest single-day selloff in five weeks. MSCI's gauge of stocks across the globe shed 0.30 percent as shares in Asia and emerging markets declined, it said.

On Wall Street, the Dow Jones Industrial Average fell 11.77 points, or 0.05 percent, to 22,284.32, the S&P 500 gained 0.18 points, or 0.01 percent, to 2,496.84 and the Nasdaq Composite added 9.57 points, or 0.15 percent, to 6,380.16, said Reuters.

AllianceDBS Research in its evening edition Tuesday said the FBM KLCI had on Sept 26 broken the 1,766 support to reach a low of 1,761.21 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 off the day’s low at 1,765.59 (down 3.55 points or 0.20%).

“In the broader market, losers outnumbered gainers with 603 stocks ending lower and 276 stocks finishing higher. That gave a market breadth of 0.45 indicating the bears were in control,” it said.

AllianceDBS Research said the market saw follow through selling activity on Sept 26 with the benchmark index breaking below the 1,766 support.

“A buying attempt to carry the market back up above the 1,770 level was made after the opening bell, but the buying power was not strong enough to outstrip the selling pressure.

“So, as soon as the last buying order was filled at 1,769.12, those market participants who missed the selling opportunity at 1,769.12 decided to book the next available buyers on line.

“This pushed the benchmark index down to the low of 1,761.21,” it said.

The research house said following the down close on Sept 26, there should be selling attempt again with immediate support at 1,756.

“The analysis of overall market action on Sept 26 revealed that buying power was weaker than selling pressure.

“As such, the FBM KLCI would likely trade below the 1,761.21 level on Sept 27,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, stocks in focus today may include: Damansara Realty, JF Technology, PRG Holdings, Permaju Industries, Green Packet, G3 Global, Genting, Vivocom, Xin Hwa, Selangor Properties, Superlon and MSM.

      Print
      Text Size
      Share