KUALA LUMPUR (April 2): The FBM KLCI is seen kicking off the second quarter of 2018 on a positive note today, with immediate hurdle at 1,867.
Stocks steadied on Thursday, after a woeful week for major technology companies, even as global equities careened towards their first quarterly drop in two years, according to Reuters.
Shares tracked by the 47-country MSCI index glided 0.86 percent higher, with Facebook Inc, Apple Inc and Google parent Alphabet Inc retaking the market's leadership mantle, it said.
On Thursday, by contrast, the Dow Jones Industrial Average rose 254.69 points, or 1.07 percent, to 24,103.11, the S&P 500 gained 35.87 points, or 1.38 percent, to 2,640.87 and the Nasdaq Composite added 114.22 points, or 1.64 percent, to 7,063.45, said Reuters.
AllianceDBS Research in its evening edition last Friday said despite the down close in the preceding day, the FBM KLCI had on March 30 opened the day on a positive note.
It said the benchmark index subsequently traded higher to 1,866.35 as market participants chose to play on the buying side in anticipation of a higher market.
The research house said under the persistent buying interest, the benchmark index was in the green throughout most of the trading sessions before settling at 1,863.46 (up 7.11 points or 0.38%) ahead of weekend.
“In the broader market, gainers outnumbered losers with 476 stocks ending higher and 384 stocks finishing lower. That gave a market breadth of 1.24 indicating the bulls were in better control,” it said.
AllianceDBS Research said the market made a higher high on March 30 with the benchmark index climbing back up above the 1,860 level.
“The positive opening level at 1,859.37 on 30 Mar 2018 had pulled the benchmark index away from the immediate risk of breaking below the support zone, 1,848 – 1,851.
“The market gained a bit of momentum after passing the 1,860 level. This can be seen the day’s high of 1,866.35.
“In the eyes of many market participants, the higher low was indeed a relief of sigh to many of them as the market was earlier expected to register a lower low given the down close on March 29,” it said.
The research house said the reason behind is simple because as the market pulls up into higher ground, the concern of a market decline becomes less apparent.
It said following the up close on March 30, there should be buying attempt with immediate hurdle at 1,867.
“The analysis of overall market action on March 30 revealed that buying power was stronger than selling pressure.
“As such, the FBM KLCI would likely trade above the 1,866.35 level on April 2,” said AllianceDBS Research.
Based on last Friday’s corporate announcements and news flow, companies in focus today may include: Enra Group Bhd, Chin Hin Group Bhd, KKB Engineering Bhd, Sumatec Resources Bhd, Berjaya Corp Bhd (BCorp), Kumpulan Perangsang Selangor Bhd (KPS), Tenaga Nasional Bhd (TNB), Minetech Resources Bhd, Nylex (M) Bhd and Sapura Industrial Bhd.