Friday 29 Mar 2024
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KUALA LUMPUR (July 7): The FBM KLCI is expected to trade sideways today with immediate hurdle at 1,775.

Stocks fell on Wall Street as U.S. Treasury yields rose on Thursday after weak economic data while the euro gained on the U.S. dollar on signs the European Central Bank could be open to scrapping its bond-buying pledge, according to Reuters.

Benchmark Treasury yields touched nearly eight-week highs on prospects of hawkish global monetary policy a day after Federal Reserve June meeting minutes showed some officials at the U.S. central bank wanted to start reducing its Treasury bonds portfolio by the end of August, it said.

Meanwhile, the Dow Jones Industrial Average fell 158.13 points, or 0.74 percent, to end at 21,320.04, the S&P 500 lost 22.79 points, or 0.94 percent, to 2,409.75 and the Nasdaq Composite dropped 61.39 points, or 1 percent, to 6,089.46.

Earlier Europe's Stoxx 600 index touched its lowest point since April 21 and ended down 0.7 percent, said Reuters.

Alliance DBS Research in its evening edition Thursday said that supported by the up close in the preceding day, the FBM KLCI had on July 6 only traded to a low of 1,765.75.

However, it said weak follow through selling interest in the area of 1,765.75 promoted supportive buying activity to chip in.

The research house said this pulled the benchmark index up to settle at the day’s high of 1,770.53 (up 2.37 points or 0.13%) in the last few minutes of buying selective blue chip stocks.

“In the broader market, losers outnumbered gainers with 511 stocks ending lower and 359 stocks finishing higher. That gave a market breadth of 0.70 indicating the bears were in better control,” it said.

Alliance DBS Research said the market made a higher high on July 6, but the benchmark index did not go far up after the opening bell.

“Like the previous few days, many market participants have chosen not to trade the open of the market in an aggressive way as they wanted to let the market to settle down for a little while before taking a stock position.

“This showed that market participants were unwilling to bet on expectation of the market to move upward just because the market has been staying in a range bound environment for the past 4 days,” it said.

The research house said following the last few minutes buying selective blue chip stocks to prop up the market settle on a positive note on July 6, there should be buying attempt with immediate hurdle at 1,775.

It said a crossover of 1,775 would see the market gearing towards 1,788.         

“The analysis of overall market action on July 6 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,770.53 level on July 7,” said Alliance DBS Research.

Based on corporate announcements and filings with Bursa Malaysia, as well as news flow yesterday, companies in focus today may include: Hibiscus Petroleum Bhd, AT Systematization Bhd, Dagangan NeXchange Bhd, Yinson Holdings Bhd, CCM Duopharma Biotech Bhd, Tenaga Nasional Bhd and Scomi Engineering Bhd.

 

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