KUALA LUMPUR (Aug 8): The FBM KLCI is expected to trend upward today in line with the overnight advance at most global markets, immediate hurdle at 1,788.
A broad measure of equity markets across the world climbed to a record high on Monday, boosted by gains in Asia, while U.S. and European markets were little changed, with U.S. energy shares capping gains on the benchmark S&P 500 index, according to Reuters.
Oil prices fell, pressured over the past several days after last week climbing to their highest since May, as OPEC exports hit a record peak last month and output rose to a 2017 high. However, both U.S. crude and Brent settled far from their session lows, it said.
The Dow Jones Industrial Average rose 15.41 points, or 0.07 percent, to 22,108.22, the S&P 500 gained 3.01 points, or 0.12 percent, to 2,479.84 and the Nasdaq Composite added 30.45 points, or 0.48 percent, to 6,382.02, said Reuters.
AllianceDBS Research in its evening edition Monday said that led by last Friday’s up close, the FBM KLCI had on Aug 7 traded higher to 1,778.48 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 was in the green zone throughout most of the trading sessions before settling near the day’s high at 1,777.91 (up 3.38 points or 0.19%).
“In the broader market, losers outnumbered gainers with 516 stocks ending lower and 363 stocks finishing higher. That gave a market breadth of 0.70 indicating the bears were in better control,” it said.
AllianceDBS Research said the market went on to register another day of higher high on Aug 7 with the benchmark index hitting a day’s high of 1,778.48.
“Unlike the past few days, stronger buying pressure did make its presence seen on Aug 7.
“The higher high with higher market volume did not come as a surprise despite the slow moving environment in recent days as certain market participants were already been spotted buying into the market quietly since July 21.
“Of course the ability of the benchmark index to stay supportive above the 1,770 level for 3 consecutive days had also helped to keep the market sentiment on a friendly mode,” it said.
The research house said following the up close on Aug 7, there should be buying attempt again with immediate hurdle at 1,788.
“The analysis of overall market action on Aug 7 revealed that buying power was stronger than selling pressure.
“As such, the FBM KLCI would likely trade above the 1,778.48 level on Aug 8,” said AllianceDBS Research.
Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Aug 8) may include the following: PIE Industrial Bhd, Malaysia Smelting Corp Bhd, IOI Corp Bhd, Kronologi Asia Bhd, CIMB Group Holdings Bhd, Eastern & Oriental Bhd, Tenaga Nasional Bhd, Padini Holdings Bhd, Palette Multimedia Bhd, Hwang Capital (M) Bhd, Ire-Tex Corp Bhd, Xian Leng Holdings Bhd and Bumi Armada Bhd.