KUALA LUMPUR (March 30): The FBM KLCI is expected to trade range-bound today wirh support at the 1,800 level.
Wall Street on Friday closed higher for the first time in a week, lifted by rising tech stocks, while oil prices slumped 5 percent on receding fears about Middle East fighting disrupting supplies, according to Reuters.
U.S. Treasury debt prices jumped on government data indicating U.S. economic growth was slowing and the dollar was down, while gold had its first losing day after a seven-session rally, it said.
AllianceDBS Research in its evening edition last Friday said the FBM KLCI had on March 27 traded lower to 1,813.30 as market participants continued to play on the selling side.
In said that in the absence of stronger buying support, the benchmark index was in the red throughout the trading sessions before settling near the day’s low at 1,813.37 (-5.05 , -0.28%) ahead of weekend.
“In the broader market, losers outnumbered gainers with 391 stocks ending lower and 353 stocks finishing higher. That gave a market breadth of 0.90 indicating the bears were in control with the bulls closely matched,” it said.
AllianceDBS Reseach said the lower high and lower low on March 27 indicated that sellers were in better control in the game play.
However, it said the market lost its fort at 1,815.
“This explained the conservative approach adopted by market participants on the buying side although the benchmark index was earlier seen poised for a test of the 1,826 level after the positive settlements on March 24 & 25.
“Following the fall back below the 1,815 level with a market settlement at 1,813.37, the benchmark index is likely to trade lower with support zone pegged between 1,795 and 1,800,” it said.
Indicator wise, the MACD is above the 9-day moving average line, it said.
“The analysis of overall market action on March 27 revealed that buying power was weaker than selling pressure.
“As such, the FBM KLCI would likely trade below the 1,813.30 level on March 30,” said AllianceDBS Research.