KLCI to trend sideways, immediate support at 1,750

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KUALA LUMPUR (July 27): The FBM KLCI is expected to consolidate and trend sideways against the backdrop of the mixed overnight close at most global markets, while technology-related stocks may come into focus given the massive sell-off in Facebook shares.

However, index-linked stocks on Bursa Malaysia could still help prop up the local index as evident from Thursday’s close where the impasse over Khazanah Nasional Bhd’s directors’ offer to resign hardly any ripple effect, from how goverment linked companies’ stocks held firm and did not tumble as many Opposition politicians had feared, showing the local stock market is more sensitive to external shocks for now.

World stock markets failed to hold onto four-month highs on Thursday as a record sell-off in Facebook shares offset optimism that the European Union and the United States would settle their differences on trade, according to Reuters.

Facebook Inc, the fifth-largest global stock by market capitalization, collapsed 18.96 percent, the biggest one-day wipeout in U.S. stock market history, after the social media company's earnings report showed slowing usage in the biggest advertising markets, it said.

MSCI's gauge of stocks across the globe shed 0.04 percent after earlier in the day rising to the highest level since March 16, it said.

The Dow Jones Industrial Average rose 112.97 points, or 0.44 percent, to 25,527.07, the S&P 500 lost 8.63 points, or 0.30 percent, to 2,837.44 and the Nasdaq Composite dropped 80.05 points, or 1.01 percent, to 7,852.19, said Reuters.

Based on corporate announcements and news flow yesterday, companies that may be in focus today include the following: Tan Chong Motor Holdings Bhd, Utusan Melayu (Malaysia) Bhd, Versatile Creative, Pantech Group Holdings Bhd, TMC Life Sciences Bhd, Pavilion Real Estate Investment Trust, ViTrox Corp Bhd, Ajiya Bhd, Ancom Bhd and Tasek Corp Bhd.