Thursday 28 Mar 2024
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KUALA LUMPUR (Sept 27): The FBM KLCI is expected to trend sideways today with immediate support at 1,786.

A rally in U.S. equities fizzled out late on Wednesday, while the U.S. dollar rose, after the Federal Reserve raised interest rates, as expected, and flagged the end of its "accommodative" monetary policy, according to Reuters.

With steady economic growth and a strong job market, the Fed indicated that it still foresees another rate rise in December, three more next year, and one in 2020, it said.

The Dow Jones Industrial Average fell 106.93 points, or 0.4 percent, to 26,385.28, the S&P 500 lost 9.59 points, or 0.33 percent, to 2,905.97 and the Nasdaq Composite dropped 17.11 points, or 0.21 percent, to 7,990.37, said Reuters.

AllianceDBS Research in its evening edition Wednesday said that dampened by the down close in the preceding day, the FBM KLCI had on Sept 26 traded lower to 1,787.62 as market participants continued to play on the selling side.

However, it said non-follow through selling interest in the area of 1,787.62 prompted supportive buying interest to chip in.

The research house said this lifted the benchmark index to 1,800.70 before settling at 1,798.72 (up 4.25 points or 0.24).

“In the broader market, gainers outnumbered losers with 469 stocks ending higher and 387 stocks finishing lower. That gave a market breadth of 1.21 indicating the bulls were in better control,” it said.

AllianceDBS Research said the market made a lower low again on Sept 26 with the benchmark index falling to a low of 1,787.62.

It said a negative opening level of 1,789 with 5.47 points lower than previous day’s settlement of 1,794.47 was initiated.

“However, market participants decided not to be aggressive in selling down the market as the day’s low of 1,787.62 had fallen into the support zone, 1,786 and 1,790.

“As soon as the last selling order was filled at 1,787.62, supportive buying interest emerged to take advantage of the lower market level to establish stock positions.

“Under the stronger buying interest, the benchmark index rose to a high of 1,800.70,” it said.

The research house said following the up close on Sept 26, there should be buying attempt with immediate support at 1,786.

“The analysis of overall market action on Sept 26 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,800.70 level on Sept 27,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, companies in focus on Thursday may include: George Kent (Malaysia) Bhd, Axiata Group Bhd, Astro Malaysia Holdings Bhd, Bumi Armada Bhd, United Malacca Bhd, Poh Huat Resources Holdings Bhd, Malaysia Airports Holdings Bhd (MAHB), Apex Equity Holdings Bhd, Poh Kong Holdings Bhd, Hai-O Enterprise Bhd and Eversendai Corp Bhd.

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