Thursday 28 Mar 2024
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KUALA LUMPUR (Sept 23): The FBM KLCI is expected to remain lacklustre today in line with the sharply lower overnight close at most global markets on falling commodity prices and lingering worries on China’s economy.

Tumbling commodities prices and worries about China's economy pulled stocks sharply lower on Tuesday, while bond yields declined and the dollar rose to a two-week high on bets US officials will soon hike interest rates, according to Reuters.

Wall Street losses hovered for much of the trading day around 2% on selling driven by falls in oil and copper before easing, it said.

AllianceDBS Research in its evening edition Tuesday said that dampened by the down close in the preceding day, the FBM KLCI had on Sept 22 traded lower to 1,628.24 as market participants continued to play on the selling side in anticipation of a lower market.

It said under the persistent selling interest, the benchmark index was in the red throughout the trading sessions before settling off the day’s low at 1,635.37 (down 4.10 points or 0.25%).

“In the broader market, gainers outnumbered losers with 424 stocks ending higher and 322 stocks finishing lower. That gave a market breadth of 1.31 indicating the bulls were in control,” it said.

AllianceDBS Research said the benchmark index made lower low for three consecutive days.

“Given the fall back below the 50-day MA line on Sept 21 and the down close on Sept 22, the benchmark index is likely to test lower level again in an attempt to further consolidate its position with immediate support seen at 1,626 after the sharp rise from the low of 1,567 (Sept 7) to the high of 1,691 (Sept 17).

“A fall below 1,626 could send the market down to the subsequent support at 1,614,” it said.

The research house said the hurdle was pegged at 1,650, adding that indicator wise, the MACD was above the nine-day moving average line.

“The analysis of overall market action on Sept 22 revealed that buying power was weaker than selling pressure.

“As such, the FBM KLCI would likely trade below the 1,628.24 level on Sept 23,” said AllianceDBS Research.

 

 

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