KUALA LUMPUR (Oct 30): The FBM KLCI is expected to ride on its positive post Budget 2018 momentum and start the week on a firmer note today and test the 1,750-point level.

The Nasdaq Composite had its best day in nearly a year on Friday, boosted by strong corporate earnings, while the euro posted its worst week of 2017 after the European Central Bank decided to prolong its bond buying to keep interest rates low, according to Reuters.

The Nasdaq Composite added 144.49 points, or 2.2 percent, to 6,701.26, the S&P 500 gained 20.67 points, or 0.81 percent, to 2,581.07, and the Dow Jones Industrial Average rose 33.33 points, or 0.14 percent, to 23,434.19, it said.

AllianceDBS Research in its evening edition last Friday said despite the down close in the preceding day, the FBM KLCI had on Oct 27 traded higher to reach a day’s high of 1,751.50 as market participants changed their game play pattern to buying in anticipation of a higher market.

It said under the persistent buying interest, the benchmark index was in the green throughout the trading sessions before settling at 1,746.13 (up 9.33 points or 0.54%) ahead of week-end.

“In the broader market, gainers outnumbered losers with 511 stocks ending higher and 344 stocks finishing lower. That gave a market breadth of 1.48 indicating the bulls were in better control,” it said.

AllianceDBS Research said the market saw a quick turnaround with a higher high on Oct 27.

“Unlike the previous day (Oct 26), the market opened the day on a positive note on Oct 27 without looking back much as market participants changed their buying gear into high speed.

“Market participants apparently were trading the market based on the index movement when big players entered the market.

“This had caused the demand supply equation to be out of balance. As buyers began to outbid themselves to get their buying orders done in this competitive environment, the benchmark index rose above the 1,750 hurdle to reach an intraday high of 1,751.50,” it said.  

The research house said following the up close on Oct 27, there should be buying attempt again with immediate hurdle at 1,750.

It said a crossover of 1,750 would see a test of next overhead resistance at 1,767. 

“The analysis of overall market action on Oct 27 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,751.5 level on Oct 30,” said AllianceDBS Research.

Based on corporate announcements and news flow last Friday, stocks in focus today include: Hua Yang Bhd, Nova MSC Bhd, Lii Hen Industries Bhd, Yinson Holdings Bhd and YFG Bhd.