KUALA LUMPUR (Oct 10): The FBM KLCI is expected to trade range bound today and eye the 1,770-point level.

World shares edged lower on Monday after key German and U.S. indexes hit fresh record peaks, while oil prices rose slightly on comments by OPEC's secretary general that indicated further possible cuts in crude production, according to Reuters.

The dollar slipped on Monday from a 10-week peak against a basket of currencies as the euro strengthened and stocks on Wall Street faded from their initial highs, it said.

The Dow Jones Industrial Average fell 12.6 points, or 0.06 percent, to 22,761.07. The S&P 500 lost 4.6 points, or 0.18 percent, to 2,544.73 and the Nasdaq Composite dropped 10.45 points, or 0.16 percent, to 6,579.73, said Reuters.

AllianceDBS Research in its evening edition Monday said driven by the last few minutes buying of selective blue chip stocks to prop up the market to settle at the day’s high of 1,764.0 on Oct 6, the FBM KLCI had on Oct 9 traded higher to 1,765.48 before settling near the day’s high at 1,764.03 (up 0.03 points or 0.0017%).

“In the broader market, gainers outnumbered losers with 430 stocks ending higher and 401 stocks finishing lower. That gave a market breadth of 1.07 indicating the bulls were in better control,” it said.

AllianceDBS Research said the market made a higher high on Oct 9, but the benchmark index did not go far up.

“This can be seen from the day’s high of 1,765.48.

“Market participants basically were cautious in their buying game because the higher highs in the last few days were seen as a technical reaction to the recent decline from the high of 1,793.22 to the low of 1,750.94 (Oct 2).

“In the absence of positive news flow, the market is likely to stay volatile for a little while with the bulls and bears are expected to continue exchanging their stock positions in an attempt to fight for control of the game,” it said.  

The research house said an ability on the part of the benchmark index to keep its low above 1,757 would certainly help to pave the way for the market to go above the 1,770 level. 

It said following the up close on Oct 9, there should be buying attempt again. 

“The analysis of overall market action on Oct 9 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,765.48 level on Oct 10,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, stocks in focus today may include: Hovid Bhd, Sanichi Technology Bhd, Kronologi Asia Bhd, Serba Dinamik Holdings Bhd, Prestariang Bhd, EKA Noodles Bhd, Mudajaya Group Bhd and Felda Global Ventures Holdings Bhd.