KUALA LUMPUR (Nov 1): The FBM KLCI is expected to start November on a lacklustre note with immediate support at seen 1,740 points.
The local benchmark index fell 7.66 points month-on-month in October.
World stocks advanced on Tuesday and set a record twelfth straight month of gains as Europe outpaced the advance on Wall Street, while the dollar was flat but saw its best month since February, according to Reuters.
Wall Street ended the session in positive territory, with the Nasdaq scoring the best day of the three major indexes, it said.
The Dow and S&P scored their seventh straight month of gains while the Nasdaq gained for a fourth straight month. For October, the Dow gained 4.3 percent, the S&P rose 2.2 percent and the Nasdaq gained 3.6 percent - the best monthly performance for each index since February, said Reuters.
AllianceDBS Research in its evening edition Tuesday said the FBM KLCI had on Oct 31 traded marginally higher to 1,751.26 as market participants continued to play a buying game in anticipation of a higher market.
However, it said non-follow through buying interest in the area of 1,751.26 prompted renewed selling interest to chip in.
It said this pushed the benchmark index down to a low of 1,742.60 before settling off the day’s low at 1,747.92 (down 0.43 points or 0.02%).
“In the broader market, gainers outnumbered losers with 458 stocks ending higher and 449 stocks finishing lower. That gave a market breadth of 1.02 indicating the bulls were in control with the bears closely matched,” it said.
AllianceDBS Research said the market saw follow through buying support on the last market day of October with the benchmark index climbing back up above the 1,750 level.
“However, the benchmark index did not go far up with only a day’s high of 1,751.26.
“The inability on the part of the benchmark index to sustain its position above the 1,750 level gave a chance to the aggressive market participants to sell.
“Under the overwhelming selling supply, the benchmark index fell to a low of 1,742.60,” it said.
The research house said following the down close on Oct 31, there should be selling attempt again with immediate support at 1,740.
It said a crossover of 1,750 on a close basis should see a test of next resistance at 1,767.
“The analysis of overall market action on Oct 31 revealed that buying power was stronger than selling pressure.
“As such, the FBM KLCI would likely trade above the 1,751.26 level on Nov 1,” said AllianceDBS Research.
Based on corporate announcements and news flow yesterday, stocks in focus today may include: Iskandar Waterfront City Bhd, Ekovest Bhd, Benalec Holdings Bhd, Wong Engineering Corp Bhd, LBS Bina Group Bhd, Sunway REIT, Ivory Properties Group Bhd, Sasbadi Holdings Bhd, Malaysia Marine and Heavy Engineering Holdings Bhd, DKSH Holdings (M) Bhd, Globetronics Technology Bhd, Hap Seng Consolidated Bhd and Theta Edge Bhd.