Friday 29 Mar 2024
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KUALA LUMPUR (July 24): The FBM KLCI is seen moving higher today, with sustained buying momentum from last Friday and gyrate between 1,751 and 1,761.

The weakening U.S. dollar fell to its lowest in more than a year against key world currencies on Friday as investors assessed comments from the European Central Bank and obstacles to U.S. President Donald Trump's domestic agenda, while a global gauge of stocks snapped a 10-session streak of gains, according to Reuters.

Gains in the yen, gold and U.S. Treasuries pointed to moves into safe-haven assets rather than stocks, which are considered riskier. Oil prices slid more than 2 percent, it said.

The Dow Jones Industrial Average fell 31.71 points, or 0.15 percent, to 21,580.07, the S&P 500 lost 0.91 point, or 0.04 percent, to 2,472.54 and the Nasdaq Composite dropped 2.25 points, or 0.04 percent, to 6,387.75, 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 July 21 traded lower to 1,752.40 as market participants continued to play on the selling side in anticipation of a lower market.

However, it said supportive buying interest chipped in to settle the market at the day’s high of 1,759.16 (up 3.53 points or 0.20%) ahead of weekend.

“In the broader market, gainers outnumbered losers with 436 stocks ending higher and 384 stocks finishing lower. That gave a market breadth of 1.13 indicating the bulls were in better control,” it said.

AllianceDBS Research said the market saw follow through selling interest on July 21 with the benchmark index making a lower low.

“In the present market environment where daily market fluctuation is confined in a narrow range, it is indeed a challenge for investors and traders to find trading opportunities.

“Like the past few days, the benchmark index managed to keep its position above the 1,751 level with only a low of 1,752.40 on July 21 as market participants became conservative in their game by not selling into the demand zone.

“As soon as the last selling order was filled at 1,752.40, supportive buying interest took the chance to establish stock positions at lower level,” it said.

The research house said following the up close on July 21, the market should continue to ding dong between 1,751 and 1,761 again with an upside bias.

“The analysis of overall market action on July 21 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,759.16 level on July 24,” said AllianceDBS Research.

Based on corporate announcements and news flow last Friday, companies that will be in focus today may include: Cycle & Carriage Bintang Bhd, TRC Synergy Bhd, Maxis Bhd, Cahya Mata Sarawak Bhd, Hong Leong Bank Bhd, Sapura Resources Bhd, Boustead Heavy Industries Corp Bhd, Landmarks Bhd, Malaysia Pacific Corp Bhd, Perdana Petroleum Bhd, UEM Sunrise Bhd, SKP Resources Bhd, Ipmuda Bhd and Encorp Bhd.

 

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