KUALA LUMPUR (Oct 29): The FBM KLCI is expected to commence the week on a tepid note and extend its run below the 1,700 level with immediate hurdle at 1,692 in line with the slide at global markets last Friday.

Sentiment at the local bourse may also somewhat be dampened by a lack of fresh catalysts ahead of the tabling of Budget 2019 this Friday.

Stock markets around the world fell on Friday, on track for the longest weekly losing streak since 2013, while US Treasury prices rose along with demand for safer bets as better-than-expected US economic data did little to assuage anxiety over disappointing corporate profits and trade wars, according to Reuters.

Wall Street fell after earnings reports from Amazon.com and Alphabet rekindled a rush to dump technology and high-growth stocks, but indexes were off earlier lows, it said.

The Dow Jones Industrial Average fell 201.24 points, or 0.81%, to 24,783.31, the S&P 500 lost 36.28 points, or 1.34%, to 2,669.29 and the Nasdaq Composite dropped 117.38 points, or 1.6%, to 7,200.95, said Reuters.

AllianceDBS Research in its evening edition last Friday said the FBM KLCI had on Oct 26 filled the downside gap left behind on Oct 25 with a day’s high of 1,691.44 as market participants chose to play on the buying side in anticipation of a higher market.

However, it said weak follow-through buying interest in the area of 1,691.44 prompted renewed selling interest to kick in.

It said this pushed the benchmark index down to 1,678.35 before settling at 1,683.06 (down 3.53 points or 0.21%) ahead of weekend.

“In the broader market, losers outnumbered gainers with 460 stocks ending lower and 373 stocks finishing higher. That gave a market breadth of 0.81 indicating the bears were in better control,” it said.

AllianceDBS Research said the market made a higher high on Oct 26 with the benchmark index crossing into the 1,690 zone.

However, it said the market did not go far up after overcoming the1,690 level.

“This can be seen from the day’s high of 1,691.44. In fact, a buying attempt with 3.89 point higher than the previous day’s settlement of 1,686.59 was initiated on opening bell with an intention to keep its position at a closer distance to the 1,700 psychological level.

“Market participants somehow were seen unwilling to take the chance of pulling the benchmark index higher than 1,691.44 for fear of sudden reversal after the strong rebound from the day’s low of 1,670.34 to the high of 1,686.59 on Oct 25.

“Judging from the way this market carried itself on Oct 25 & 26, we had a situation where the bulls attempting to turn around to go upward, but the bears on the other hands were fighting for control of the battle given the current market environment,” it said.

The research house said a close below 1,680 would put pressure on the market to test the next support zone, 1,640–1,660.

It said following the down close on Oct 26, there should be selling attempt with immediate hurdle at 1,692.

“The analysis of overall market action on Oct 26 revealed that buying power was weaker than selling pressure.

“As such, the FBM KLCI would likely trade below the 1,678.35 level on Oct 29,” said AllianceDBS Research.

Based on corporate announcements and news flow last Friday, stocks in focus today may include the following: MMC Corp Bhd, Gamuda Bhd, IOI Corp Bhd, AirAsia Group Bhd, EITA Resources Bhd, Dagang Nexchange Bhd, Sunway Bhd, MKH Bhd, Tropicana Corporation Bhd and Ipmuda Bhd.