Friday 29 Mar 2024
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KUALA LUMPUR (Feb 12): The FBM KLCI is expected to trade range bound with immediate support at 1,680.

Stock markets globally inched higher on Monday after China struck an upbeat tone as trade talks between the United States and Beijing resumed, though worries remained over the fate of Brexit, according to Reuters.

On Wall Street, the Dow Jones Industrial Average fell 53.22 points, or 0.21 percent, to 25,053.11, the S&P 500 gained 1.92 points, or 0.07 percent, to 2,709.8 and the Nasdaq Composite added 9.71 points, or 0.13 percent, to 7,307.91, it said.

European markets closed higher, with the benchmark Stoxx 6000 index gaining 0.8 percent, while Chinese shares rose more than 1 percent on the first day of trading after the week-long Lunar New Year holiday. MSCI's gauge of stocks across the globe gained 0.03 percent, said Reuters.

AllianceDBS Research in ite evening edition Feb 11 said that dampened by last Friday’s down close, the FBMKLCI had on Feb 11 traded lower to 1,681.64 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 most of the trading sessions before rebounding to settle near the day’s high at 1,688.56 (up 2.04 points or 0.12%).

“In the broader market, gainers outnumbered losers with 489 stocks ending higher and 351 stocks finishing lower. That gave a market breadth of 1.39 indicating the bulls were in better control,” it said.

AllianceDBS Research said the market made a lower low to 1,681.64.

It said a buying attempt with an opening level of 2.18 points higher than last Friday’s settlement was initiated in a hope to pull the market away from nearing the 1,680 support level, but there was no immediate strong follow through buying interest after the opening bell.

“Market participants were not keen to be aggressive on the buying side at that point of time.

“This gave rise a chance to the aggressive market participants to sell, which pushed the benchmark index down to 1,681.64.

“In view of the market merely less than 2 points away from the 1,680 support level, risk taking buying interest kicked in to lend a helping hand to lift the market back up,” it said.

The research house said following the up close on Feb 11, there should be buying attempt with immediate support at 1,680.

“The analysis of overall market action on Feb 11 revealed that buying power was stronger than selling pressure.

“As such, the FBMKLCI would likely trade above the 1,689.74 level on Feb 12,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, companies that could be in focus today may include the following: Eastern & Oriental Bhd (E&O), Scientex Bhd, Daibochi Bhd, UOA Development Bhd, Kelington Group Bhd, Hock Seng Lee Bhd, Globaltec Formation Bhd, Berjaya Sports Toto Bhd, Malaysia Airports Holdings Bhd, Tiger Synergy Bhd and Barakah Offshore Petroleum Bhd.

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