KUALA LUMPUR (March 1): The FBM KLCI is expected to hover around its immediate support level of 1,650 today with investors taking a cautious stance following the weaker overnight close at most global markets.

The sudden announcement of his resignation of his membership in Umno by former premier and elder statesman Tun Dr Mahathir Mohamad, while not expected to send shockwaves at the local market, is sufficient to cause some minor ripples in anticipation of what may lie ahead for the country's ruling party.

A gauge of stocks across the globe on Monday posted its fourth straight month of declines, while crude oil notched its first positive month since October, according to Reuters.

Gold closed February with a gain of more than 10%, the most for any month in four years, it said.

AllianceDBS Research in its evening edition Monday said the FBM KLCI had on Feb 29 dipped below the 1,658 level to reach an intraday low of 1,651.55 as market participants chose to play on the selling side in anticipation of a lower market.

The research house said in the absence of strong supportive buying interest, the benchmark index was in the red throughout the trading sessions before settling at 1,654.75 (down 8.69 points or 0.52%).

"In the broader market, losers outnumbered gainers with 599 stocks ending lower and 306 stocks finishing higher. That gave a market breadth of 0.51 indicating the bears were in control," it said.

AllianceDBS Research said having stayed supportive at 1,658 for two days after losing the 1,670 fort on Feb 24, the market came under renewed selling pressure to go below the 1,658 level on the last trading day of Feb 2016.

It said the sell-down to the low of 1,651.55 was believed to be owing to the stock liquidation on the part of buyers for fear of further decline.

"Following the settlement at 1,654.75 on Feb 29, the benchmark index is expected to trade lower again with immediate support pegged at 1,650.

"A fall below 1,650 could send the index down to the subsequent support at 1,630," it said.

The research house said that indicator wise, the MACD was below the nine-day moving average line.

"The analysis of overall market action on Feb 29 revealed that buying power was weaker than selling pressure.

"As such, the FBM KLCI would likely trade below the 1,651.55 level on March 1," said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, companies that may be in focus today could include the following: PUC Founder (MSC) Bhd, Sona Petroleum Bhd, Hock Seng Lee Bhd, KPJ Healthcare Bhd, Tenaga Nasional Bhd, Felda Global Ventures Holdings Bhd, Boustead Holdings Bhd, Hibiscus Petroleum Bhd, Lafarge Malaysia Bhd, Eversendai Corporation Bhd, Boustead Heavy Industries Corporation Bhd and Muhibbah Engineering Bhd.