KUALA LUMPUR (April 10): The FBM KLCI is seen trending higher today with immediate hurdle at 1,851, in line with the overnight gains at Wall Street.
Wall Street led global stocks higher on Monday as the beaten down tech sector rallied, also lifting oil prices, while investors kept an eye on a U.S.-China trade spat, according to Reuters.
Large-cap U.S. tech companies rose 2.6 percent but are still down more than 7 percent from a record high hit four weeks ago, it said.
The Dow Jones Industrial Average rose 368.12 points, or 1.54 percent, to 24,300.88, the S&P 500 gained 41.7 points, or 1.60 percent, to 2,646.17 and the Nasdaq Composite added 141.45 points, or 2.05 percent, to 7,056.56, said Reuters.
AllianceDBS Research in its evening edition Monday said that led by last Friday’s up close, the FBM KLCI had on April 9 traded higher to 1,850.01 as market participants continued to play on the buying side in anticipation of a higher market.
It said under the persistent buying interest, the benchmark index was in the green throughout most of the trading sessions before settling near the day’s high at 1,849.71 (up 12.70 points or 0.69%).
“In the broader market, gainers outnumbered losers with 702 stocks ending higher and 249 stocks finishing lower. That gave a market breadth of 2.81 indicating the bulls were in better control,” it said.
AllianceDBS Research said the market saw buying activity on April 9 with the benchmark index reach a high of 1,850.01.
“The positive opening level and the inability on the part of the benchmark index to go far down helped to instil certain amount of buying confidence.
“This was subsequently followed by the higher high into the 1,850 zone.
“However, market participants turned a little conservative in their buying game in the area of 1,850.01 as 1,851 was seen as a resistance selling area,” it said.
The research house said a small pullback was observed when some market participants with winning trades chose to lock in a portion of their profit.
It said following the up close on April 9, there should be buying attempt with immediate hurdle at 1,851.
“The analysis of overall market action on April 9 revealed that buying power was stronger than selling pressure.
“As such, the FBM KLCI would likely trade above the 1,850.01 level on April 10,” said AllianceDBS Research.
Based on corporate announcements and newsflow yesterday, stocks that will be in focus today may include: Serba Dinamik Holdings Bhd, Felda Global Ventures Holdings Bhd, Ikhmas Jaya Group Bhd, Ireka Corp Bhd, Symphony Life Bhd, UCrest Bhd, Cypark Resources Bhd, Kumpulan Perangsang Selangor Bhd and Gamuda Bhd.