KUALA LUMPUR (July 5): The FBM KLCI is seen advancing today with immediate overhead resistance seen at 1,665.

The post-Brexit recovery across European markets sputtered to a halt on Monday with major equity indices lower and safe-haven demand for precious metals helping the price of silver surge to near a two-year high, according to Reuters.

Financial and commodities markets in the United States were closed for the July 4 public holiday. U.S. stock futures were up 0.1 percent in low volumes, it said.

AllianceDBS Research in ite evening edition Monday said despite last Friday’s down close, the FBM KLCI had on July 4 reached a day’s high of 1,657.77 after opening the day on a firm note as market participants chose to play on the buying side.

It said under the persistent buying pressure, the benchmark index was in the green throughout the trading sessions before settling at 1,654.84 (up 8.62 points or 0.52%). 

“In the broader market, losers outnumbered gainers with 363 stocks ending lower and 338 stocks finishing higher. That gave a market breadth of 0.93 indicating the bears were in control,” it said.

AllianceDBS Research said the market saw a return of buying confidence as the upside gap left behind on June 30 was still unfilled.

“The willingness on the part of market participants to establish stock positions was believed to be owing to the closure of the downside gap (June 13) on June 29 and the crossover of the 1,652 hurdle.

“These positive market setups have helped to reduce the market negativity to a certain extent.

“As such, the market is seen poised to trade higher again with immediate overhead resistance seen at 1,665,” it said.  

The research house said that the market support level is pegged at 1,642, adding that indicator wise, the MACD is above the 9-day moving average line.

“The analysis of overall market action on July 4 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,657.77 level on July 5,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, companies that may be in focus today could include: Tenaga Nasional Bhd, Comintel Corp Bhd, KNM Group Bhd, LTKM Bhd, Silver Ridge Holdings Bhd, NWP Holdings Bhd and Zecon Bhd.