Thursday 28 Mar 2024
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KUALA LUMPUR (Sept 29): The FBM KLCI is expected to stay cautious today despite the overnight rally at Wall Street as local investor sentiment remains somewhat nervy, and the benchmark index seen swaying between the 1,659 and 1,672 ranges.

Oil prices rallied on Wednesday after members of the Organization of the Petroleum Exporting Countries reached an agreement on a production-limiting deal, boosting energy sector shares, according to Reuters.

The U.S. dollar was flat versus a currency basket but fell to a near-five month low versus the Norwegian krone. Norway, although not an OPEC member, is a major crude producer, it said.

AllianceDBS Research in its evening edition Wednesday said despite the down close in the preceding day, the FBM KLCI had on Sept 28 traded higher to 1,671.07 as market participants chose to play on the buying side in anticipation of a higher market.

It said under the supportive buying interest, the benchmark index was in the green throughout most the trading sessions before settling near the day’s low at 1,664.96 (up 0.24 points or 0.01%).

“In the broader market, losers outnumbered gainers with 397 stocks ending lower and 370 stocks finishing higher. That gave a market breadth of 0.93 indicating the bears were in control,” it said.

AllianceDBS Research said the market traded higher to go into the 1,670 zone on Sept 28 with buyers seen more willing to establish stock positions.

“However, the market ran into resistance selling pressure in the area of 1,672.

“The increased selling supply subsequently pushed the market back down below the 1,670 level as buying demand began to fizzle out.

“Given the market behaviour over the past 5 market days, the market trading activity is likely to confine between 1,659 and 1,672 in the next few days,” it said.

The research house said a closure of the upside gap left behind on Sept 22 could see further decline to the next support zone, 1,652 and 1,657.

However, it said a rise above 1,672 would see a test of next resistance at 1,692, adding that indicator wise, the MACD is still below the 9-day moving average line.

“The analysis of overall market action on Sept 28 revealed that buying power was weaker than selling pressure.

“As such, the FBM KLCI would likely trade below the 1,663.88 level on Sept 29,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, companies that may be in focus today could include: Sime Darby Bhd, SP Setia Bhd, SapuraKencana Petroleum Bhd, DRB-Hicom Bhd, VS Industry Bhd, Yinson Holdings Bhd, Utusan Melayu (M) Bhd, Ancom Bhd, Media Prima Bhd, Seni Jaya Corp Bhd, Gamuda Bhd and Dufu Technology Corp Bhd.

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