KUALA LUMPUR (Jan 3): The FBM KLCI is expected to trend range bound today amid some choppy trading today with immediate hurdle at 1,787.

European stocks closed lower on Tuesday, the first trading day of 2018, while Wall Street advanced and the U.S. dollar fell to its weakest in over three months against key currencies, according to Reuters.

MSCI's gauge of stocks across the globe gained 0.61 percent. The index had set scores of record highs and rose by one-fifth in value in 2017, it said.

The Dow Jones Industrial Average rose 59.79 points, or 0.24 percent, to 24,779.01, the S&P 500 gained 17.15 points, or 0.64 percent, to 2,690.76 and the Nasdaq Composite added 91.91 points, or 1.33 percent, to 6,995.30, said Reuters.

AllianceDBS Research in its evening edition Tuesday said despite the strong up close on the last market day of 2017, the FBM KLCI had on Jan 2 opened the day on a negative note as market participants changed their game play pattern to selling.

It said under the persistent selling interest, the benchmark index traded down to a low of 1,772.0 and kept its position in the red zone throughout the trading sessions before rebounding to settle at the day’s high of 1,782.70 (down 14.11 points or 0.79%).

“In the broader market, gainers outnumbered losers with 530 stocks ending higher and 490 stocks finishing lower. That gave a market breadth of 1.08 indicating the bulls were in control with the bears closely matched,” it said.

AllianceDBS Research said the market made a lower low on the first market day of 2018 with the benchmark index falling to a low of 1,772.0.

“Given the high market volatility with an absolute range of 24 points measuring from the day’s high of 1,796.81 (Dec 29, 2017) to the low of 1,772.0 (2 Jan 2018), market participants may have to adjust their focus to a choppy trading environment in the coming few days.

“The weak opening level suggested that market participants were unwilling to take the chance of buying further into the market for fear of pullbacks after the recent strong gains in 7 market days from the low of 1,732.92 (Dec 19, 2017) to the high of 1,796.81 (Dec 29),” it said.

The research house said following the near day’s high down close on Jan 2, there should be buying attempt again with immediate hurdle at 1,787.

It said a crossover of 1,787 could send the market up to 1,800.

“The analysis of overall market action on Jan 2 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,783.48 level on Jan 3,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, companies in focus today may include Malaysia Pacific Corp Bhd, T7 Global Bhd, MB World Group Bhd, Dagang NeXchange Bhd, Rhone Ma Holdings Bhd, MCT Bhd, D’Nonce Technology Bhd, Berjaya Media Bhd, Paramount Corp Bhd, Aluminium Co of Malaysia Bhd and Prestariang Bhd.