Friday 29 Mar 2024
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KUALA LUMPUR (March 28): The FBM KLCI is expected to trend sideways today in line with the mixed overnight close at most global markets, with immediate hurdle at 1,867.

U.S. stocks sank in late trading on Tuesday, with faltering technology shares reversing a global stock rally that had swept through Asia and Europe, according to Reuters.

Trading sessions in Asia and Europe had ended on a high note as trade fears ebbed, while U.S. equities sold off sharply in the afternoon just a day after turning in their best performance since August 2015. Tech shares tumbled partly on concerns about regulation of social media, it said.

MSCI's gauge of stocks across the globe shed 0.55 percent after solid gains for much of the day, added Reuters.

The Dow Jones Industrial Average fell 344.89 points, or 1.43 percent, to 23,857.71, the S&P 500 lost 45.93 points, or 1.73 percent, to 2,612.62 and the Nasdaq Composite dropped 211.74 points, or 2.93 percent, to 7,008.81, it said.

AllianceDBS Research in its evening edition Tuesday said despite the down close in the preceding day, the FBM KLCI had on March 27 traded higher to 1,867.11 as market participants changed their game play pattern to buying in anticipation of a higher market.

It said in the absence of stronger selling interest, the benchmark index was in the green end throughout the trading sessions before settling near the day’s low at 1,862.45 (up 2.54  points or 0.14%).

“In the broader market, gainers outnumbered losers with 463 stocks ending higher and 433 stocks finishing lower. That gave a market breadth of 1.06 indicating the bulls were in control with the bears closely matched,” it said.

AllianceDBS Research said having fallen to the low of 1,852.55 on March 26, the market saw buying activity on March 27 with the benchmark index reaching a high of 1,867.11.

“Generally, market participants believed that the sell off on March 23 & 26, which took the benchmark index down to 1,852 (March 26), had helped to balance out the excess demand created from the low of 1,828 (March 16) to the high of 1,876 (March 22).

“This can be seen from the 63% retracement of that up move on March 26.

“Furthermore, the ability on the part of the benchmark index to stay above the 1,851 support level on March 26 with a down close off the day’s low and the favourable external market development, gave rise to certain amount of buying confidence,” it said.

Moreover, the research house said this kind of market setup was viewed as a low risk, high reward with high probability of trading opportunity in the eyes of risk-taking market participants.

It said following the up close on March 27, there should be buying attempt with immediate hurdle at 1,867.

It added a crossover of 1,867 would see the market gearing towards 1,876.  

“The analysis of overall market action on March 27 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,867.11 level on March 28,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, stocks in focus today may include the following: Yinson Holdings Bhd, CIMB Group Holdings Bhd, LPI Capital Bhd, Sime Darby Bhd, Country View Bhd, UEM Sunrise Bhd, Tenaga Nasional Bhd, Malaysia Airports Holdings Bhd, Dagang NeXchange Bhd, MCE Holdings Bhd and Harn Len Corp Bhd. 

 

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