KLCI to extend positive run, immediate hurdle at 1,687

-A +A

KUALA LUMPUR (Jan 16): The FBM KLCI is expected to extend its positive run today in line with the overnight gains at the global markets, with immediate hurdle at 1,687.

Sterling rebounded from the day's lows on Tuesday after British lawmakers defeated Prime Minister Theresa May's deal on withdrawing from the European Union, and major world stock markets climbed on hopes of more stimulus for China's economy, according to Reuters.

Sterling rallied more than a cent to stand above $1.28 after the vote. It was last trading at $1.2871, up 0.06 percent on the day, it said.

The Dow Jones Industrial Average rose 119.83 points, or 0.5 percent, to 24,029.67, the S&P 500 gained 23.65 points, or 0.92 percent, to 2,606.26 and the Nasdaq Composite added 107.30 points, or 1.55 percent, to 7,013.21, said Reuters.

AllianceDBS Research in its evening edition Jan 15 said the FBMKLCI had on Jan 15 formed an inside day bar as market participants decided not to stage a follow through selling pressure.

It said in the absence of stronger selling interest, the benchmark index was moving between the green and red zones before settling at the day’s high of 1,679.42 (up 3.26 points or 0.19%) in the last few minutes buying of selective blue chip stocks.

“In the broader market, gainers outnumbered losers with 413 stocks ending higher and 374 stocks finishing lower. That gave a market breadth of 1.10 indicating the bulls were in better control,” it said.

AllianceDBS Research said the market saw no follow through selling interest on Jan 15.

It said the market was expected to trade lower on Jan 15 given the down close on Jan 14, but market participants were unwilling to play an aggressive selling game.

“Instead, market participants chose to be conservative in their game play.

“An examination of the way this market carried itself in recent days seemed to suggest that there were basically 2 groups of short term market participants who were not in agreement of the immediate market direction. “With 4 up closes and 6 down closes inside the small rectangle platform over the past 10 days, the market should continue to move between 1,666 and 1,687 in the coming few days until we see a breakout of the range,” it said.

The research house said following the up close on Jan 15, there should be buying attempt with immediate hurdle at 1,687.

“The analysis of overall market action on Jan 15 revealed that buying power was stronger than selling pressure.

“As such, the FBMKLCI would likely trade above the 1,679.42 level on Jan 16,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, companies that could be in focus today may include the following: Aeon Credit Service (M) Bhd, CIMB Group Holdings Bhd, Deleum Bhd, Prinsiptek Corp Bhd, Wellcall Holdings Bhd, Barakah Offshore Bhd, Tune Protect Group Bhd, YFG Bhd, Vizione Holdings Bhd and KIP Real Estate Investment Trust (REIT) .