KUALA LUMPUR (Oct 4): The FBM KLCI is expected to trend higher today in line with the overnight gains at most global markets, with support seen in the area of 1,750.

World shares extended a run of record highs on Tuesday on signs of strong economic growth, while the dollar was slightly weaker against the euro as investors squared positions after a three-week rally and before several days of heavy U.S. data, according to Reuters.

MSCI's gauge of world stock performance hit a fresh all-time high, the three major stock indexes on Wall Street closed at record highs and overnight in Tokyo stocks hit two-year highs, it said.

The Dow Jones Industrial Average rose 76.28 points, or 0.34 percent, to 22,633.88. The S&P 500 gained 3.19 points, or 0.13 percent, to 2,532.31 and the Nasdaq Composite added 7.07 points, or 0.11 percent, to 6,523.79, said Reuters.

AllianceDBS Research in its evening edition Tuesday said the FBM KLCI had on Oct 3 opened the day on a positive note in anticipation of a higher market.

It said the benchmark index subsequently traded higher settle at the day’s high of 1,759.67 (up 4.89 points or 0.28%) as market participants changed their game play pattern from selling to buying.

“In the broader market, losers outnumbered gainers with 410 stocks ending lower and 405 stocks finishing higher. That gave a market breadth of 0.98 indicating the bears were in better control with the bulls closely matched,” it said.

AllianceDBS Research said having made lower highs for 9 consecutive days, the benchmark index registered a higher high on Oct 3.

“This suggested that market participants were beginning to change their usual aggressive selling game pattern.

“While it is premature to confirm anything at this juncture, the benchmark index had spent most of its trading sessions in the green zone on Oct 3, which was viewed as an encouraging sign.

“Certain factors must have caused the change in trading behaviour,” it said.

The research house said a closer observation of the behavioural changes was believed to be due to an expectation of a technical rebound after the loss of 43 points over the past 12 market days and the support found in the area of 1,750.

It said following the up close on Oct 3, there should be buying attempt again.  

“The analysis of overall market action on Oct 3 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,759.67 level on Oct 4,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, stocks in focus on today may include Mudajaya Group Bhd, Cloudaron Group Bhd, AirAsia Bhd, Al-Salam REIT, Felda Global Ventures Holdings Bhd, Ivory Properties Group Bhd and Wintoni Group Bhd.