KUALA LUMPUR (Dec 8): The FBM KLCI is expected to continue its sideway consolidation today in line with the weaket overnight close at Wall Street as global oil prices stayed low.

Sentiment at the local bourse could be given a positive nudge by year-end window dressing as well as the Umno general assembly slated to kick off today.

Oil prices skidded to their lowest level in nearly seven years on Monday, knocking down shares of major oil companies on Wall Street as a global glut showed no signs of abating, according to Reuters.

Brent crude prices fell to $40.60, the lowest since February 2009, after a meeting of members of the Organization of the Petroleum Exporting Countries Friday ended in disagreement over production cuts and without a reference to its output ceiling, it said.

AllianceDBS Research in its evening edition Monday said that the FBM KLCI had on Dec 7 opened on a firm note as market participants chose to play on the buying side in anticipation of a higher market.

It said that in the absence of stronger selling interest, the benchmark index rose to a high of 1,675.96 and kept its position in the green throughout the trading sessions before settling off the day’s high at 1,672.00 (up 4.13 points or 0.25%).

“In the broader market, gainers outnumbered losers with 460 stocks ending higher and 359 stocks finishing lower. That gave a market breadth of 1.28 indicating the bulls were in control,” it said.

AllianceDBS Research said having registered down close for 3 days in a row, the benchmark index made a higher low and higher high on Dec 7.

“This indicated a possibility of a beginning change in the game play pattern from earlier selling to buying.

“However, an immediate hurdle is seen at 1,677. The off day’s high settlement on Dec 7 somehow suggested that conservative buyers were cautious in pushing the market much higher as aggressive sellers could be looking to sell into the market when the index approaches the 1,677,” it said.

The research house said a crossover of 1,677 should lift the benchmark index to the next resistance at 1,688.

It said following the up close on Dec 7, the benchmark index should continue to stay between 1,660 and 1,686 in the coming few days until we see a breakout, adding that indicator wise, the MACD was below the 9-day moving average line.

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

“As such, the FBM KLCI would likely trade above the 1,675.96 level on Dec 8,” said AllianceDBS Research.