Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 18): The FBM KLCI is seen opening higher today in line with the overnight gains at most global markets.

Global equity markets rallied on Wednesday, as oil prices jumped on optimism that top crude producers could finalize a deal to freeze production, while the Mexican peso strengthened after the country's central bank hiked its benchmark interest rate, according to Reuters.

After a surprise agreement on Tuesday between non-OPEC Russia and OPEC leader Saudi Arabia to freeze output at January levels, Iran's oil minister on Wednesday met counterparts from Venezuela, Iraq and Qatar, saying the proposed production "ceiling" should be the first step toward stabilizing the market, it said.

AllianceDBS Research in its evening edition Wednesday said that led by the up close in the preceding day, the FBM KLCI had on Feb 17 opened the day on a firm note.

The research house said the benchmark index subsequently traded to a high of 1,669.02 as market participants continued to play on the buying side in anticipation of a higher market.

It said the benchmark index was in the green throughout most of the trading sessions before settling at 1,664.32 (down 0.67 points or 0.04%).

“In the broader market, gainers outnumbered losers with 440 stocks ending higher and 402 stocks finishing lower. That gave a market breadth of 1.09 indicating the bulls were in control,” it said.

AllianceDBS Research said the market registered another day of higher high on Feb 17.

“Following the 4 consecutive days of higher high with a down close on Feb 17, the market is expected to continue consolidating between 1,648 and 1,672 in the coming few days.

“An upside breakout of 1,672 should see the market gearing towards the 1,700 psychological level.

“However, an inability on the part of benchmark index to break 1,672 on the upside would likely see renewed selling interests, which could pressure the index back down to 1,648,” it said.

The research house said a fall below 1,648 would induce stronger selling pressure which could send the market downward with subsequent support at 1,630.

It said that indicator wise, the MACD was above the 9-day moving average line.

“The analysis of overall market action on Feb 17 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,669.02 level on Feb 18,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, companies likely to be in focus today include: Zelan Bhd, Malaysia Airports Holdings Bhd, Kuala Lumpur Kepong Bhd, Felda Global Ventures Holdings Bhd, Sona Petroleum Bhd, Axiata Group Bhd, Perdana Petroleum Bhd, British American Tobacco (M) Bhd and SAM Engineering & Equipment Bhd.

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