KUALA LUMPUR (March 2): The FBM KLCI is expected to extend its gains today in line with the overnight jump at most global markets, and settle above the 1,658-point level.

Upbeat US manufacturing data and another jump in oil prices on Tuesday pushed a leading gauge of global stocks to its highest in nearly two months, according to Reuters.

US stocks led the way, with bank shares up more than 3% after the strong data refreshed expectations that the Federal Reserve may raise rates later this year, it said.

AllianceDBS Research in its evening edition Tuesday said despite the weak down close in the preceding day, the FBM KLCI had on March 1 opened the day on a positive note.

It said the benchmark index subsequently traded higher to settle at the day's high of 1,670.82 (up 16.07 points or 0.97%) as market participants chose to play on the buying side.

"In the broader market, gainers outnumbered losers with 476 stocks ending higher and 405 stocks finishing lower. That gave a market breadth of 1.17 indicating the bulls were in control," it said.

AllianceDBS Research said having recorded lower high for four consecutive days, the benchmark index had on first trading day of March 2016 reversed its position to register a higher high.

It said this is viewed as encouraging as the market had not only protected its support at 1,650, it had also recaptured its fort at 1,658.

"A preliminary study of the market action revealed that the sell down we witnessed recently after the violation of 1,670 could be an attempt to flush out the weak holders.

"This can be seen from the non-follow through selling pressure on March 1.

"Sellers were unwilling to play an aggressive selling game in the area of 1,650 despite the weak settlement on Feb 29," it said.

The research house said following the up close on March 1, the market should be gearing upward to test the immediate hurdle at 1,686.

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

"The analysis of overall market action on March 1 revealed that buying power was stronger than selling pressure.

"As such, the FBM KLCI would likely trade above the 1,670.82 level on March 2," said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, companies that may be in focus today could include the following: Econpile Holdings Bhd, PPB Group Bhd, CIMB Group Holdings Bhd, HeveaBoard Bhd, Sime Darby Bhd, Fajarbaru Builder Group Bhd, Kuchai Development Bhd, Ta Ann Holdings Bhd, Unimech Group Bhd, China Automobile Parts Holdings Bhd, Scomi Engineering Bhd, Flonic Hi-Tec Bhd, Southern Steel Bhd and Hap Seng Consolidated Bhd.