KUALA LUMPUR (Aug 9): The FBM KLCI is expected to trend range-bound today with immediate hurdle seen at 1,788, in line with the overnight retreat at most global markets.
An index of stocks across the globe slipped on Tuesday after touching a record high, following U.S. President Donald Trump's warning that North Korean threats "will be met with fire and fury," while the dollar rose against a basket of peers after U.S. job openings jumped to a record high in June, according to Reuters.
The S&P 500 turned negative and hit a session low after Trump said North Korea "best not make any more threats to the United States,"it said.
The Dow Jones Industrial Average fell 33.08 points, or 0.15 percent, to 22,085.34, the S&P 500 lost 5.99 points, or 0.24 percent, to 2,474.92 and the Nasdaq Composite dropped 13.31 points, or 0.21 percent, to 6,370.46, said Reuters.
AllianceDBS Research in its evening edition Tuesday said the FBM KLCI had on Aug 8 traded higher to 1,782.63 as market participants continued to play on the buying side in anticipation of a higher market.
It said under the persistent supportive buying interest, the benchmark index kept its position in the green zone throughout most of the trading sessions before settling near the day’s high at 1,781.65 (up 3.74 points or 0.21%).
“In the broader market, losers outnumbered gainers with 602 stocks ending lower and 269 stocks finishing higher. That gave a market breadth of 0.44 indicating the bears were in control,” it said.
AllianceDBS Research said that supported by the positive momentum in recent days, the benchmark index advanced into the 1,780 zone to reach a high of 1,782.63 on Aug 8.
“However, the market did not go far up as market participants decided not to chase up the market in a more aggressive manner for fear of a pullback.
“Nonetheless, it was indeed a relief to see the market trading into the 1,780 zone after spending 4 days between the 1,770 and 1,780 levels and 23 days between the 1,750 and 1,770 levels, as a new trading platform may have been established in the coming few days,” it said.
The research house said following the up close on Aug 8, there should be buying attempt again with immediate hurdle at 1,788.
“The analysis of overall market action on Aug 8 revealed that buying power was stronger than selling pressure.
“As such, the FBM KLCI would likely trade above the 1,782.63 level on Aug 9,” said AllianceDBS Research.
Based on corporate announcements and news flow yesterday, stocks in focus for today may include the following: Tien Wah Press Holdings Bhd, Minetech Resources Bhd, Mesiniaga Bhd, Berjaya Assets Bhd, ML Global Bhd, Hartalega Holdings Bhd, OldTown Bhd, Seacera Group Bhd, XiDeLang Holdings Bhd and YKGI Holdings Bhd.