KUALA LUMPUR (March 19): The FBM KLCI is expected to edge higher today in line with the gains at Wall Street last Friday, while oil and gas-related stocks are likely to be in focus.
Oil prices finished the week at a gain after a big Friday rally, and U.S. stock indices ended flat-to-higher, to close a bumpy week on a high note, according to Reuters.
Crude prices had been on track for a weekly loss, but spiked on Friday as energy investors looked to cover short bets ahead of a televised interview Sunday by the U.S. news program "60 Minutes" with Saudi Arabia's Crown Prince Mohammed bin Salman, it said.
The S&P 500, which was down 1.5 percent on the week through Thursday, avoided its first five-day losing streak of 2018, gaining 4.68 points, or 0.17 percent, to 2,752.01, it said.
The Dow Jones Industrial Average rose 72.85 points, or 0.29 percent, to 24,946.51, while the Nasdaq Composite added 0.25 points, or 0 percent, to 7,481.99, said Reuters.
AllianceDBS Research in its evening edition last Friday said that dampened by the down close in the preceding day, the FBM KLCI had on March 16 opened the day on a negative note.
It said the benchmark index subsequently traded down to a low of 1,838.40 as market participants continued to play on the selling side in anticipation of a lower market.
The research house said under the persistent selling interest, the benchmark index was in the red throughout most of the trading sessions before rebounding to settle at 1,846.39 (up 1.12 points or 0.06%) ahead of weekend.
“In the broader market, losers outnumbered gainers with 504 stocks ending lower and 382 stocks finishing higher. That gave a market breadth of 0.75 indicating the bears were in better control,” it said.
AllianceDBS Research said the market continued to make lower low for 3 consecutive days with the benchmark index falling to a low of 1,838.40. With this lower low, the upside gap left behind on March 12 is now filled.
“The closure of the upside gap is not seen as a positive sign for market development, market participants are generally not expecting this market to turn up so soon.
“While there may now be a shift in market perception, the key level to watch is 1,834.
“All eyes are believed to be watching at the 1,834 level, because a downside violation of 1,834 could begin to instil a negative thought into the minds of many market participants, which in turn would likely trigger a sell down given the priority to protect investible capital,” it said.
The research house said following the up close on March 16, there should be buying attempt with immediate support at 1,834.
“The analysis of overall market action on March 16 revealed that buying power was stronger than selling pressure.
“As such, the FBM KLCI would likely trade above the 1,851.75 level on March 19,” said AllianceDBS Research.
Based on corporate announcements and news flow last Friday, companies that may be in focus today may include the following: MWE Holdings Bhd, Berjaya Sports Toto Bhd, Wah Seong Corp Bhd, Vizione Holdings Bhd, Priceworth International Bhd, PRG Holdings Bhd, Bina Darulaman Bhd and Golden Land Bhd.