KUALA LUMPUR (Sept 8): The FBM KLCI is expected to extend its lacklustre run today as bears remain in control at the local market with no fresh catalyst in sight, compounded by a weakening ringgit and less than impressive crude oil price performance

European stocks rose on Monday, lifted by mining and commodities giant Glencore after it pledged to slash its debt by a third, and countering a fall in Asian markets led by weakness in China following a four-day break there, according to Reuters.

Trading was lighter than usual with U.S. markets closed for the Labor Day holiday, while investors across all asset classes continued to digest the implications of last week's U.S. jobs data for the timing of the first U.S. interest rate hike since 2006, it said.

AllianceDBS Research in its evening edition Monday said that dampened by the last Friday’s down close, the FBM KLCI had on Sept 7 gapped down to reach an intraday low of 1,567.91.

It said that under the persistent selling pressure, the benchmark index was in the red throughout the trading sessions before rebounding to settle at the day’s high of 1,582.85 (down 6.31 points or 0.40%) in the last few minutes buying of selective blue chips.

“In the broader market, losers outnumbered gainers with 401 stocks ending lower and 330 stocks finishing higher. That gave a market breadth of 0.82 indicating the bears were in control,” it said.

AllianceDBS Research said having stayed supportive above the 1,580 level for 6 days, the market dipped below the 1,580 level on Sept 7 as market participants rushed to liquidate their stock positions.

“This suggested that market participants were still in the jittery mood and willing to take the necessary action to protect their trading capital for fear of more market weakness.

“However, certain market participants lent a helping hand to lift the benchmark index back up above the 1,580 level by acquiring some blue chips in the last few minutes of market trading period.

“A fall below 1,580 level again would put pressure on the market down to the subsequent support at 1,550 with overhead resistance pegged at 1,613,” it said.

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

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

“As such, the FBM KLCI would likely trade below the 1,567.91 level on 8 Sep 2015,” said AllianceDBS Research.