KUALA LUMPUR (Aug 2): The FBM KLCI is expected to trade range bound today within a tight band of between 1,790 – 1,800.
Stocks fell worldwide on Wednesday on persistent fears of an escalation of the trade war between the United States and China although robust results from Apple Inc helped cap losses and the Federal Reserve left U.S. interest rates untouched, according to Reuters.
Apple, which jumped nearly 6 percent to a record high of $201.76 after predicting a surge in current-quarter sales, pulled the NASDAQ into positive territory and lifted the other two major U.S. stock indexes. The Mac and iPhone-maker saw its best day since February 2017, it said.
The Dow Jones Industrial Average fell 81.37 points, or 0.32 percent, to 25,333.82, the S&P 500 lost 2.93 points, or 0.10 percent, to 2,813.36 and the Nasdaq Composite added 35.50 points, or 0.46 percent, to 7,707.29, said Reuters.
AllianceDBS Research in its evening edition Wednesday said that led by the up close in the preceding day, the FBM KLCI had on Aug 1 traded higher to settle at the day’s high of 1,788.31 (up 4.06 points or 0.23%) in last few minutes buying of selective blue chip stocks.
“In the broader market, gainers outnumbered losers with 449 stocks ending higher and 432 stocks finishing lower. That gave a market breadth of 1.03 indicating the bulls were in better control,” it said.
AllianceDBS Research said having settled in the 1,780 zone on the last day of July 2018, the market went on to inch higher on Aug 1.
“Like the previous day, a selling attempt was again initiated at 1,777.85 on opening bell.
“This low opening level had also failed to induce further selling pressure to push the benchmark index much lower.
“The inability on the part of the benchmark index to go below 1,777.58 saw the emergence of aggressive buying support to prop up the market back into the 1,780 zone with an intention to keep the benchmark index at or near the high end,” it said.
The research house said the rationale behind this move was believed to avoid negative emotion from creeping into the chart picture even the market may have appeared to have over extended in this market run up.
It said at the day’s high of 1,788.31, the benchmark index has in fact chalked up about 126 points over the past 18 days.
It said following the up close on Aug 1, there should be buying attempt with immediate zone, 1,790 – 1,800.
“The analysis of overall market action on Aug 1 revealed that buying power was stronger than selling pressure.
“As such, the FBM KLCI would likely trade above the 1,788.31 level on Aug 2,” said AllianceDBS Research.
Based on corporate announcements and news flow yesterday, companies in focus today may include: DRB-Hicom Bhd, Malakoff Corp Bhd, Borneo Aqua Harvest Bhd, Boustead Plantations Bhd, LKL International Bhd, Malaysia Marine and Heavy Engineering Holdings Bhd, Ann Joo Resources Bhd, Utusan Melayu (Malaysia) Bhd, Poly Glass Fibre (M) Bhd, Datasonic Group Bhd, Apex Equity Holdings Bhd and AirAsia Group Bhd.