Thursday 28 Mar 2024
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KUALA LUMPUR (Sept 8): The FBM KLCI is expected to trend sideways today with immediate hurdle at 1,788, in line with the flattish overnight close at Wall Street.

The euro surged on Thursday after the European Central Bank indicated it was preparing to scale back its stimulus program, while gold rose to a one-year high after the U.S. dollar tumbled, according to Reuters.

The dollar index, which measures the greenback against a basket of six major rivals, fell as much as 1.1 percent to 91.405, its lowest since January 2015, it said.

The Dow Jones Industrial Average fell 22.86 points, or 0.1 percent, to 21,784.78, the S&P 500 lost 0.44 points, or 0.02 percent, to 2,465.1 and the Nasdaq Composite added 4.56 points, or 0.07 percent, to 6,397.87, said Reuters.

AllianceDBS Research in its evening edition Thursday said that led by the up close in the preceding day, the FBM KLCI had on Sept 7 opened the day on a positive note as market participants continued to play on the buying side in anticipation of a higher market.

It said under the persistent buying interest, the benchmark index was in the green throughout the trading sessions before settling at the day’s high 1,782.98 in the last few minutes buying of selective blue chip stocks (up 10.50 points or 0.59%).

“In the broader market, gainers outnumbered losers with 533 stocks ending higher and 317 stocks finishing lower. That gave a market breadth of 1.68 indicating the bulls were in better control,” it said.

AllianceDBS Research said the market made a higher high on Sept 7 with the benchmark index spending all of its trading activity above the 1,770 level.

“There were more willing buyers than willing sellers in the game play given a choice to trade the stock market.

“While it remains premature to confirm anything at this juncture, the ability on the part of the benchmark index to keep its lows above the 1,765 in the last 2 days was something to be contended with as this showed that market participants were not in a hurry to sell aggressively into the market in spite of the sell down on Sept 5,” it said.

The research house said following the up close on Sept 7, there should be buying attempt again with immediate hurdle at 1,788.

“The analysis of overall market action on Sept 7 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,782.98 level on Sept 8,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, stocks in focus today may include: Ahmad Zaki Resources Bhd, Mitrajaya Holdings Bhd, Amanahraya REIT, Gabungan AQRS Bhd, Lien Hoe Corp Bhd, SCGM Bhd, Media Prima Bhd, PUC Bhd, Telekom Malaysia Bhd, British American Tobacco (M) Bhd, AirAsia Bhd and Bintai Kinden Corp Bhd.

 

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