KUALA LUMPUR (Feb 2): The FBM KLCI is expected to edge up cautiously today as it starts trading for the month of February, in line with the overnight close at most global markets.

Global markets got February off to a cautious start on Monday following a rocky January, with stocks and oil falling in the wake of weak manufacturing reports around the world, according to Reuters.

U.S. and European stocks fell. Disappointing euro zone manufacturing data dovetailed with the fastest contraction in China's giant factory sector in over three years, and U.S. manufacturing sentiment remained weak, it said.

AllianceDBS Research in its evening edition last Friday said that supported by the strong up close in the preceding day, the FBM KLCI had on Jan 29 opened the day on a positive note.

It said the benchmark index continued its momentum to rally into 1,650 zone as market participants continued to play a buying game in anticipation of a higher market.

It said under the persistent buying interest, the benchmark index settled at the day’s high of 1,667.80 (up 33.27 points or 2.04%).

“In the broader market, gainers outnumbered losers with 689 stocks ending higher and 285 stocks finishing lower. That gave a market breadth of 2.41 indicating the bulls were in control,” it said.

AllianceDBS Research said that having traded down to the low of 1,600.92 on Jan 21, the FBM KLCI has registered up close for 5 consecutive days.

“The benchmark index saw buying activity again on Jan 29.

“The market may still be in a downtrend, but with settlements above the 1,620 level over the past few days suggested the willingness on the part of market participants to take the chance to play on the buying side.

“Following the up close at 1,667.80 on Jan 29, the benchmark index should be moving towards the immediate hurdle at 1,675,” it said.

The research house said market support was pegged at 1,650.

It said a fall below 1,650 would put pressure on the index down to the subsequent support zone, 1,630 – 1,640, adding that indicator wise, the MACD was above the 9- day moving average line.

“The analysis of overall market action on Jan 29 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,667.80 level on Feb 2,” said AllianceDBS Research.

Based on corporate announcements and announcements last Friday, companies that may be in focus today could include the following: Puncak Niaga, Bina Darulaman, Sime Darby, Kossan, XOX, Sasbadi, Tek Seng, HLFG, Tropicana, Hai-O, Acoustech and Maybulk.