KUALA LUMPUR (Oct 9): The FBM KLCI is expected to start the week on a positive note today and trend higher, with immediate hurdle at 1,770.

The U.S. dollar tumbled and debt yields pared sharp gains on Friday on a report that North Korea is preparing to test a long-range missile, reversing earlier jumps after U.S. jobs data for September raised the likelihood of an interest rate hike in December, according to Reuters.

A Russian lawmaker just returned from a visit to Pyongyang was quoted by Russia's RIA news agency as saying that North Korea believes the missile can reach the U.S. West Coast, it said.

The Nasdaq edged up at the close, its ninth straight higher close, while the S&P 500 and Dow ended the session slightly lower, said Reuters.

AllianceDBS Research in its evening edition last Friday said despite the down close in the preceding day, the FBM KLCI had on Oct 6 traded higher as market participants changed their game play pattern to buying 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 at the day’s high of 1,764.0 (up 4.91 point or 0.28%) in the last few minutes buying of selective blue chip stocks.

“In the broader market, gainers outnumbered losers with 488 stocks ending higher and 349 stocks finishing lower. That gave a market breadth of 1.39 indicating the bulls were in better control,” it said.

AllianceDBS Research said the market made a higher high on Oct 6 with the benchmark index reach a day’s high of 1,764 in the last few minutes buying of selective blue chip stocks.

“In fact, many market participants apparently were not seen aggressive in their buying game ahead of weekend for fear of negative external market development.

“Nonetheless, a preliminary analysis of the market over the past 4 days revealed that a consolidating platform is seen shaping up with 3 up closes and 1 down close after testing the 1,750 support on Oct 2,” it said.

The research house said following the last few minutes buying of selective blue chip stocks on Oct 6, there should be buying attempt again with immediate hurdle at 1,770.   

“The analysis of overall market action on Oct 6 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,764.0 level on Oct 9,” said AllianceDBS Research.

Based on corporate announcements and news flow last Friday, companies that will draw attention today may include: Lotte Chemical Titan Holding Bhd, Supermax Corp Bhd, SYF Resources Bhd, Muhibbah Engineering (M) Bhd, Watta Holding Bhd, Karyon Industries Bhd, Yinson Holdings Bhd, Boustead Plantations Bhd, DutaLand Bhd, Econpile Holdings Bhd and Malaysian Resources Corp Bhd.