Friday 29 Mar 2024
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KUALA LUMPUR (Dec 14): The FBM KLCI is expected to sustain its positive momentum and stay above the 1,730-point level today as year-end window dressing activities appear to lift sentiment.

European shares closed lower as U.S. stock indexes advanced on Wednesday ahead of a widely expected interest rate increase by the Federal Reserve, while U.S. Treasury yields fell on disappointing inflation data, according to Reuters.

MSCI's gauge of stocks across the globe rose to a record high, gaining 0.20 percent, it said.

The Dow Jones Industrial Average rose 101.85 points, or 0.42 percent, to 24,606.65, the S&P 500 gained 2.12 points, or 0.08 percent, to 2,666.23 and the Nasdaq Composite added 13.84 points, or 0.2 percent, to 6,876.16, said Reuters.

AllianceDBS Research in its evening edition Wednesday said led by the up close at 1,729.57 in the preceding day, the FBM KLCI had on Dec 13 crossed over the 1,730 hurdle to settle at the day’s high of 1,737.66 (up 8.09 points or 0.47%).

“In the broader market, gainers outnumbered losers with 563 stocks ending higher and 353 stocks finishing lower. That gave a market breadth of 1.59 indicating the bulls were in better control,” it said.

AllianceDBS Research said the market saw buying activity on Dec 13 with the benchmark index crossing into the 1,730 zone to reach a high of 1,737.66.

It said this suggested that market participants were willing to play a more aggressive buying game.

“The crossover of 1,730 was indeed encouraging because 1,730 was generally viewed a selling resistance level.

“The crossover of 1,730 had given certain amount of buying confidence.

“A closer study of the way this market carried itself on Dec 13 revealed that a highly competitive trading activity was taking place in the area of 1,730,” it said.

The research house said this can be seen from the higher market volume of 2.5 billion shares compared to the average of 18.95 billion shares from Nov 30 to Dec 12.

It said following the up close on Dec 13, there should be buying attempt again with immediate hurdle at 1,738.

It added that a crossover of 1,738 would see the market moving towards the next resistance at 1,750.

“The analysis of overall market action on Dec 13 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,737.66 level on Dec 14,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, stocks in focus today may include: Malayan Banking Bhd, Kejuruteraan Asastera Bhd, PBA Holdings Bhd, Minetech Resources Bhd, Aeon Credit Service (M) Bhd, AirAsia Bhd, Berjaya Food Bhd, PUC Bhd and O&C Resources Bhd.

 

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