Friday 29 Mar 2024
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KUALA LUMPUR (Nov 14): The FBM KLCI is seen staying lacklustre today in line with mixed overnight close at most global markets, as bears at the local market hold the upperhand for now.

World stock markets were down on Monday amid uncertainty over the fate of U.S. tax reform efforts, while Britain's pound fell on growing concerns about the future of Prime Minister Theresa May, according to Reuters.

U.S. stock indexes made little ground. Some investors sought bargains after a few days of losses while others were put off by a dividend cut from heavyweight General Electric, as well as the company's plan to radically shrink to focus on sectors where it thinks it can make a profit, it said.

The Dow Jones Industrial Average rose 35.76 points, or 0.15 percent, to 23,457.97, the S&P 500 gained 3.16 points, or 0.12 percent, to 2,585.46 and the Nasdaq Composite added 8.21 points, or 0.12 percent, to 6,759.15, said Reuters.

AllianceDBS Research in ite evening edition on Monday said the FBM KLCI had on Nov 13 opened the day on a positive note as market participants decided not to stage an immediate follow through selling pressure.

It said in the absence of stronger selling interest, the benchmark index was in the green throughout most of the trading sessions before breaking the 1,740 support to settle at the day’s low of 1,737.49 (down 4.79 points or 0.27%) in the last few minutes selling of selective blue chip stocks.

“In the broader market, losers outnumbered gainers with 594 stocks ending lower and 319 stocks finishing higher. That gave a market breadth of 0.53 indicating the bears were in better control,” it said.

AllianceDBS Research said the market saw supportive buying interest in the early trading session on Nov 13, but the market failed to sustain its position above the 1,740 level as some market participants chose to sell selective blue chip stocks in the last few minutes before the closing bell.

“This violation of 1,740 is expected to dampen the market sentiment because aggressive market participants would likely be taking the chance to sell given this imbalance demand and supply relationship.

“Thus, an inability on the part of the benchmark index to climb back up above the 1,740 level could induce more selling pressure into the market,” it said.

The research house said following the down close on Nov 13, there should be selling attempt again.

“The analysis of overall market action on Nov 13 revealed that buying power was weaker than selling pressure.

“As such, the FBM KLCI would likely trade below the 1,737.49 level on Nov 14,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, stocks in focus today may include Guan Chong Bhd, United Plantations Bhd, KLCCP Stapled Group Bhd, IJM Corp Bhd, Trive Property Group Bhd, Tadmax Resources Bhd, Rohas Tecnic Bhd, Dataprep Holdings Bhd, Scicom (MSC) Bhd, Malayan Banking Bhd, My E.G. Services Bhd and Dutch Lady Milk Industries Bhd.

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