Thursday 28 Mar 2024
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KUALA LUMPUR (Sept 11): The FBM KLCI is expected to trade range bound today with support seen at 1,755 points.

Reduced expectations for another U.S. Federal Reserve interest rate hike this year helped drive down the dollar to its lowest in more than 2-1/2 years on Friday and kept gold near a one-year high, according to Reuters.

The euro hit multi-year peaks in the wake of a European Central Bank meeting, while U.S. crude oil prices tanked more than 3 percent as powerful Hurricane Irma roared toward Florida, it said.

U.S. shares were mixed, with the S&P ending slightly lower as investors braced for Irma and fretted that Pyongyang could launch another missile test on Saturday, North Korea’s founding day, keeping risk appetite in check going into the weekend, said Reuters.

The Dow Jones Industrial Average rose 13.01 points, or 0.06 percent, to end at 21,797.79, the S&P 500 lost 3.67 points, or 0.15 percent, to 2,461.43 and the Nasdaq Composite dropped 37.68 points, or 0.59 percent, to 6,360.19, it said.

AllianceDBS Research in its evening edition last Friday said despite the last few minutes buying of selective blue chip stocks to settle the market at the day’s high of 1,782.98 in the preceding day, the FBM KLCI had on Sept 8 traded within previous day’s range to form an inside day bar as market participants chose not to stage an immediate follow through buying interest.

It said in the absence of stronger supportive buying interest, profit taking activity chipped in to push the benchmark index down to a low of 1,775.06 before settling off the day’s low at 1,779.90 (down 3.08 points or 0.17%) ahead of weekend.

 

“In the broader market, gainers outnumbered losers with 473 stocks ending higher and 384 stocks finishing lower. That gave a market breadth of 1.23 indicating the bulls were in better control,” it said.

AllianceDBS Research said the inside day bar indicated a pause in the game play with both the buyers and sellers were in a balanced position on Sept 8.

“Market participants were unwilling to play a more aggressive buying game because the last few minutes buying of selective blue chip stocks on Sept 7 was not seen convincing enough to encourage them to part with their investible monies.

“An examination of the recent market behaviour revealed that this market is likely to stay between 1,765 and 1,788 in the coming few days as buyers and sellers are expected to continue exchanging their stock positions until we see a breakout.

“A crossover of 1,788 could see the market gearing towards 1,800,” it said.

It said conversely, a fall below 1,765 would put pressure on the market to go down to the subsequent support at 1,755.

The research house said following the down close on Sept 8, there should be selling attempt again.     

“The analysis of overall market action on Sept 8 revealed that buying power was weaker than selling pressure.

“As such, the FBM KLCI would likely trade below the 1,775.06 level on Sept 11,” said AllianceDBS Research.

Based on corporate announcements and news flow last Friday, stocks in focus today may include: Felday Global Ventures Holdings Bhd, Gabungan AQRS Bhd, Wintoni Group Bhd, Lien Hoe Corp Bhd, Perak Transit Bhd, MyEG Services Bhd and MMC Corp Bhd.

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