KUALA LUMPUR (April 16): The FBM KLCI is expected to trend sideways with immediate support at 1,863.
Oil prices extended recent gains and a gauge of global stocks eased on Friday as concern over a broader conflict in Syria left investors nervous, while U.S. bank shares led Wall Street lower, according to Reuters.
The State Department said on Friday that it had proof that Syria carried out a recent chemical weapons attack in the town of Douma, it said.
The Dow Jones Industrial Average fell 122.91 points, or 0.5 percent, to 24,360.14, the S&P 500 lost 7.69 points, or 0.29 percent, to 2,656.3 and the Nasdaq Composite dropped 33.60 points, or 0.47 percent, to 7,106.65, said Reuters.
AllianceDBS Research in its evening edition last Friday said despite the last few minutes buying of selective blue chip stocks to settle the market at the day’s high of 1,873.62 in the preceding day, the FBM KLCI had on April 13 traded within previous day’s range to form an inside day bar as market participants chose not to stage an immediate follow through buying interest.
It said in the absence of stronger buying interest, the benchmark index was in the red throughout the trading sessions before settling at 1,868.47 (down 5.15 points or 0.27%).
“In the broader market, gainers outnumbered losers with 601 stocks ending higher and 325 stocks finishing lower. That gave a market breadth of 1.84 indicating the bulls were in better control,” it said.
AllianceDBS Research said the inside day bar indicated a pause in the game play with the buyers and sellers seen in a balanced position.
“It was not a surprise to see a non-follow through buying support because market participants were basically not convinced of the high end closing of the benchmark index on April 12 after the last few minutes buying of selective blue chip stocks.
“However, the supportive buying interest we saw from April 5 to April 12 managed to shift the market scenario from downtrend to sideways.
“This had led to a change of market trading environment and sentiment to a certain extent,” it said.
The research house said following the down close on April 13, there should be selling attempt with immediate support at 1,863.
It said a fall below 1,863 would put pressure on the market down to the subsequent support at 1,846.
“The analysis of overall market action on April 13 revealed that buying power was stronger than selling pressure.
“As such, the FBM KLCI would likely trade above the 1,871.13 level on April 16,” said AllianceDBS Research.
Based on corporate announcements and news flow last Friday, companies in focus today may include: DiGi.Com Bhd, UEM Sunrise Bhd, Datasonic Group Bhd, Serba Dinamik Holdings Bhd, Tropicana Corp Bhd, MCT Bhd, MK Land Holdings Bhd, WZ Satu Bhd, Ireka Corp Bhd, Inari Amerton Bhd, Nexgram Holdings Bhd and Vizione Holdings Bhd.