KUALA LUMPUR (May 15): The FBM KLCI is expected to trend higher on sustained buying momentum immediate hurdle at 1,874, in line with the overnight gains at most global markets.

A gauge of stocks around the world reached its highest point in about two months on Monday amid hopes for improving trade relations between the United States and China, while oil prices climbed further, according to Reuters.

Wall Street's main stock indexes registered slim gains, pulling back from stronger increases during the session, it said.

The Dow Jones Industrial Average rose 68.24 points, or 0.27 percent, to 24,899.41, the S&P 500 gained 2.41 points, or 0.09 percent, to 2,730.13 and the Nasdaq Composite added 8.43 points, or 0.11 percent, to 7,411.32, said Reuters.

AllianceDBS Research in its evening edition Monday said the FBM KLCI had on May 14 opened the day on a negative note.

It said the benchmark index subsequently broke below the 1,810 support to reach a low of 1,797.14 as market participants chose to play on the selling side in anticipation of a lower market.

“However, non-follow through selling pressure in the area of 1,797.14 prompted strong supportive buying interest to chip in.

“This lifted the benchmark index back up to a high of 1,869.23 before settling at 1,868.00.

“In the broader market, gainers outnumbered losers with 930 stocks ending higher and 405 stocks finishing lower. That gave a market breadth of 2.29 indicating the bulls were in control,” it said.

AllianceDBS Research said the market saw selling pressure on the opening bell on May 14 with the benchmark index breaking below the 1,810 support level to reach a low of 1,797.14 as market participants liquidated their stock positions in an attempt to cut their losses short.

It said when the benchmark index lost its fort at 1,810, many market participants became concerned about the potential market weakness. “Negative thoughts about the market began to linger in their heads which translated into selling activity.

“The market subsequently gained its momentum to reach the lowest low of 1,797.14 since Feb 7 after breaching the 1,810 level.

“However, supportive buying demand kicked in as the sell down in the early session was seen to have presented a quality trading and investing opportunity to the risk taking market participants to acquire the beaten down stocks,” it said.

The research house said under the overwhelming buying interest, the market reversed its position in a strong manner to go back up above the 1,810 level with a higher high of 1,876.62.

It said following the up close on May 14, there should be buying attempt with immediate hurdle at 1,874.

“The analysis of overall market action on May 14 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,876.62 level on May 15,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, companies that may be in focus today may include the following: Felda Global Ventures Holdings Bhd, S P Setia Bhd, GD Express Carrier Bhd, Daibochi Plastic and Packaging Industry Bhd, Sunway Construction Group Bhd, Damansara Realty Bhd, Malaysian Bulk Carriers Bhd and MISC Bhd.