KUALA LUMPUR (Aug 3): The FBM KLCI is expected to trade range bound today immediate hurdle pegged at 1,772.

A gauge of world stocks edged lower on Wednesday even as Wall Street's venerable Dow Jones Industrial Average topped the 22,000 barrier on strength in Apple shares, while the U.S. dollar held near 15-month lows on doubts about another rate hike this year, according to Reuters.

Shares of Apple, the largest U.S. company by market capitalization, were up 4.73 percent at $157.14 after hitting a record high of $159.75 in the wake of its earnings, helping lift the Dow above the 22,000 mark, it said.

The Dow Jones Industrial Average rose 52.32 points, or 0.24 percent, to 22,016.24, the S&P 500 gained 1.22 points, or 0.05 percent, to 2,477.57 and the Nasdaq Composite dropped 0.29 points to 6,362.65, said Reuters.

AllianceDBS Research in its evening edition Wednesday said that led by the up close in the preceding day, the FBM KLCI had on Aug 2 traded higher to 1,771.32 as market participants continued to play on the buying side in anticipation of a higher market.

It said under the persistent buying interest, the benchmark was in the green throughout the trading sessions before settling near the day’s high at 1,770.61 (up 5.48 points or 0.31%).

“In the broader market, losers outnumbered gainers with 446 stocks ending lower and 384 stocks finishing higher. That gave a market breadth of 0.86 indicating the bears were in better control,” it said.

AllianceDBS Research said the market made a higher high again on Aug 2 with the benchmark index crossing into the 1,770 zone.

“However, the market did not go far up with only a day’s high of 1,771.32 as market participants decided to be cautious in their buying game in the area of 1,772.

“This 1,772 level is seen as a supply level where selling supply is expected to exceed buying demand.

“So, many market participants would tend to sell in the area of 1,772 where the odds are perceived to be stacked in favour of sellers,” it said.

The research house said following the up close on Aug 2, there should be buying attempt again with immediate hurdle pegged at 1,772.

It said a crossover of 1,772 would lift the market to 1,788.  

“The analysis of overall market action on Aug 2 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,771.32 level on Aug 3,” said AllianceDBS Research.

Based on that corporate announcements and news flow yesterday, stocks in focus today may include Prestariang Bhd, Power Root Bhd, mTouche Technology Bhd, Bina Darulaman Bhd, IGB Real Estate Investment Trust, Glomac Bhd, Censof Holdings Bhd, Puncak Niaga Holdings Bhd and Chemical Company of Malaysia Bhd.