KUALA LUMPUR (March 4): The FBM KLCI is expected to sustain its momentum and stay above the crucial 1,800-point level today despite the weaker overnight performance at global and US equity markets.

U.S. stocks followed other equities markets lower on Tuesday, with major indexes pulling back from record highs as soft auto sales raised doubts about the U.S. economy, while the dollar fell from an 11-year peak versus a basket of currencies, according to Reuters.

Investors are awaiting evidence the global economy is improving before adding to equity holdings, analysts said. A stronger-than-expected 2.9 percent rise in German retail sales in January helped lift European shares near seven-year highs, though they later pulled back, it said.

AllianceDBS Research in ite evening edition Tuesday said despite the down close in the preceding day, the FBM KLCI had on March 3 traded higher to 1,825.79 as market participants took the chance 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 was in the green throughout the trading sessions before settling at 1,821.25 (+ 4.12, + 0.23%).

“In the broader market, losers outnumbered gainers with 461 stocks ending lower and 420 stocks finishing higher. That gave a market breadth of 0.91 indicating the bears were in control with the bulls closely matched,” it said.

AllianceDBS Research said the higher high on March 3 indicated that buyers were in better control over the sellers.

It said the benchmark index had been trading between 1,800 and 1,826 since Feb 13.

The research house said market participants were seen not in a hurry to sell down the market after the strong recovery from the low of 1,671 (Jan 17) to the high of 1,831 (Feb 4).

It explained that the climb above the 1,818 level again on March 3 seemed to suggest that the buyers were still not giving up the attempts to test the recent high of 1,831.

It said the immediate support was seen at 1,810.

Indicator wise, the MACD is marginally below the 9-day moving average line, it said.

“The analysis of overall market action on March 3 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,825.79 level on March 4,” said AllianceDBS Research.