KUALA LUMPUR (June 16): The FBM KLCI is expected to remain lacklustre today in line with the ovenight fall at most global markets.

World stock indexes fell on Thursday as technology shares extended their recent selloff, while the prospect of tighter monetary policy in the United States and Britain pushed up the dollar, according to Reuters.

High global inventories and doubts about OPEC's ability to implement agreed production cuts pressured oil prices, it said.

The Dow Jones Industrial Average was down 43.57 points, or 0.2 percent, to 21,330.99, the S&P 500 had lost 11.44 points, or 0.47 percent, to 2,426.48 and the Nasdaq Composite had dropped 55.35 points, or 0.89 percent, to 6,139.54, said Reuters.

The pan-European FTSEurofirst 300 index lost 0.3 percent and MSCI's gauge of stocks across the globe fell 0.9 percent, it said.

AllianceDBS Research in its evening edition yesterday said that led by the up close in the preceding day, the FBM KLCI had on June 15 traded higher to 1,795.01.

However, it said non-follow through buying support in the area of 1,795.01 prompted profit taking activity to chip in.

The research house said this caused the benchmark index to swing between the green and red zones throughout the trading sessions before settling at 1,790.01 (down 2.34 points or 0.13%).

“In the broader market, losers outnumbered gainers with 541 stocks ending lower and 346 stocks finishing higher. That gave a market breadth of 0.63 indicating the bears were in control,” it said.

AllianceDBS Research said the market continued to make higher high for 4 consecutive days with a day’s high of 1,795.01 on June 15.

“Market participants became cautious in their buying game at 1,795.01 as the benchmark index moved a step closer to the 1,800 hurdle.

“Since the 1,800 level is perceived to be a psychologically selling supply area, we can expect to see many sell orders to be placed in the area of 1,800.

“With the day’s high of 1,795.01 only 5 points away from the 1,800 resistance, it is not hard to understand the rationale behind the non-aggressive buying manner,” it said.

The research house said what the big boys are going to do at 1,800 will remain a concern to the market participants.

It said following the down close on June 15, there should be selling attempt again.  

“The analysis of overall market action on June 15 revealed that buying power was weaker than selling pressure.

“As such, the FBM KLCI would likely trade below the 1,788.27 level on June 16,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, stocks in focus today may include: Malaysian Resources Corp Bhd, Protasco Bhd, Sunway Construction Group Bhd, Eco World Development Group Bhd, Eco World International Bhd, Berjaya Sports Toto Bhd and Tien Wah Press Holdings Bhd.