KUALA LUMPUR (Sept 10): The FBM KLCI is expected to trend higher today  and defend its 1,600-point level although gains may be limited on some profit taking

U.S. stocks fell on Wednesday, weighed down by a slide in Apple's share price and weakness in the energy sector, though European and major Asian bourses earlier ended higher, according to Reuters.

Oil prices ended sharply lower, pressured by ongoing concerns about oversupply and bets that demand may slow with global economic growth, it said.

AllianceDBS Research in its evening edition Wednesday said that led by the up close in the preceding day, the FBM KLCI had on Sept 9 gapped up on opening bell.

The research house said the benchmark index subsequently crossed over the 1,605 hurdle to reach an intraday high of 1,605.79 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 near the day’s high at 1,603.36 (up 16.24 points or 1.02%).

“In the broader market, gainers outnumbered losers with 666 stocks ending higher and 228 stocks finishing lower. That gave a market breadth of 2.92 indicating the bulls were in control,” it said.

AllianceDBS Research said the market witnessed intensified buying pressure on Sept 9, this can be seen from the upside gap created on the opening bell with buyers rushing to acquire stock positions.

“Under the overwhelming buying demand, market traded into the 1,600 zone.

“However, the market ran into resistance selling in the area of 1,605.79.

“Given the well-placed settlement level at 1,603.36 on Sept 9, the benchmark index is seen in an excellent position to overcome the 1,605 hurdle again.

“A crossover of 1,605 would see the market gearing towards the next hurdle at 1,626,” it said.  

The research house said indicator wise, the MACD was above the 9-day moving average line.

“The analysis of overall market action on Sept 9 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,605.79 level on Sept 10,” said AllianceDBS Research.