KUALA LUMPUR (June 13): The FBM KLCI is expected to trade range bound today with an upside bias, and hover above the 1,790 level.

A sell-off in Apple and other tech heavyweights dragged stocks down for a second session on Monday, while the dollar slipped ahead of the U.S. Federal Reserve meeting this week, according to Reuters.

The technology sector rout weighed on all three major U.S. stock indexes and raised concerns about lofty U.S. share levels, it said.

The Dow Jones Industrial Average fell 36.3 points, or 0.17 percent, to 21,235.67, the S&P 500 lost 2.38 points, or 0.10 percent, to 2,429.39 and the Nasdaq Composite dropped 32.45 points, or 0.52 percent, to 6,175.47, said Reuters.

The pan-European STOXX 600 was down 1 percent, while MSCI's gauge of stocks across the globe was down 0.3 percent, it said.

AllianceDBS Research in its evening last Friday said that the FBM KLCI had on June 9 traded lower to 1,781.23 after a weak opening level as market participants continued to play the selling game.

However, it said weak follow through selling pressure in the area of 1,781.23 prompted supportive buying interest to chip in.

It said this lifted the benchmark index to a day’s high of 1,790.64 before settling near the day’s high at 1,788.89 (up 3.32 points or 0.19%).

“In the broader market, gainers outnumbered losers with 476 stocks ending higher and 396 stocks finishing lower. That gave a market breadth of 1.20 indicating the bulls were in control,” it said.

AllianceDBS Research said the market made a lower low again on June 9 but the benchmark index did not go far down.

“This can be seen from the day’s low of 1,781.23. The inability on the part of market to go lower than 1,781.23 provided opportunities for the risk taking market participants to establish cheaper stock positions.

“In the absence of breaking news, aggressive market participants apparently had chosen to be on the buying side given a choice to trade the market.

“A preliminary analysis of the market behaviour seemed to reveal that certain market participants wanted to ignore all the news that may be coming in and trade based on the market movement,” it said.

The research house said following the up close on June 9, there should be buying attempt again with immediate hurdle at 1,795.

It said a crossover of 1,795 would open up the path to test the 1,800 psychological level.    

“The analysis of overall market action on June 9 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,790.64 level on June 13,” said AllianceDBS Research.

Based on corporate announcements and news flow today, stocks in focus on Tuesday (June 13) may include: Alliance Investment Bank Bhd, UMW-Oil & Gas Corp Bhd, Astro Malaysia Holdings Bhd, Mercury Industries Bhd, Pentamaster Corp Bhd, Pasukhas Group Bhd, Permaju Industries Bhd, Vivocom International Holdings Bhd, Malaysia Airports Holdings Bhd, JF Technology Bhd, IHH Healthcare Bhd, Sam Engineering & Equipment Bhd and Felda Global Ventures Holdings Bhd.