KUALA LUMPUR (Sept 14): The FBM KLCI is seen trending sideways ahead of the extended weekend immediate support at 1,777.

Signs of movement in the U.S.-China trade stand-off and an interest rate hike in emerging market trouble-spot Turkey sent an index of global stocks higher on Thursday as risk appetite returned, according to Reuters.

Wall Street followed Asia's major markets higher after news that U.S. President Donald Trump's administration had put out feelers to Beijing for a new round of trade talks. European stocks were close to flat, it said.

The Dow Jones Industrial Average rose 147.07 points, or 0.57 percent, to 26,145.99, the S&P 500 gained 15.26 points, or 0.53 percent, to 2,904.18, and the Nasdaq Composite added 59.48 points, or 0.75 percent, to 8,013.71, said Reuters.

AllianceDBS Research in its evening edition Thursday said the FBM KLCI had on Sept 13 traded lower to 1,777.45 as market participants chose to play on the selling side in anticipation of a lower market.

However, it said non-follow through selling interest at 1,777.45 prompted supportive buying interest to chip in.

It said this lifted the benchmark index back up to 1,792.96 before settling near the day’s high at 1,792.60 (up 7.35 points or 0.41%).

“In the broader market, gainers outnumbered losers with 474 stocks ending higher and 404 stocks finishing lower. That gave a market breadth of 1.17 indicating the bulls were in better control,” it said.

AllianceDBS Research said the market saw selling activity on Sept 13 with the benchmark index falling to a low of 1,777.45.

It said the selling supply was a dominant force soon after the opening bell because those market participants who missed the selling opportunity on Sept 12 chose to liquidate their stock positions for fear of further decline.

“However, the market ran out of selling steam in the area of 1,777.45.

“At the day’s low of 1,777.45, the market was 4 points away from the immediate support of 1,773.

“Having calculated the risk reward profile, aggressive market participants decided to risk 4 points for an immediate potential gain of 16.55 points, measuring from the low of 1,777.45 to the expected selling resistance level at 1,794,” it said.

The research house said following the up close on Sept 13, there should be buying attempt with immediate support at 1,777.

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

“As such, the FBM KLCI would likely trade above the 1,792.96 level on Sept 14,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, stocks in focus today may include: Westports Holdings Bhd, Bermaz Auto Bhd, Yee Lee Corp Bhd, Tasco Bhd, SMTrack Bhd, Panpages Bhd, Axiata Group Bhd, FGV Holdings Bhd, Binasat Communications Sdn Bhd, Parkson Holdings Bhd and Dataprep Holdings Bhd.