Friday 29 Mar 2024
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KUALA LUMPUR (Jan 13): The FBM KLCI is expected to trend range-bound today and climb above the 1,650-point level in line with the strong overnight gains at most global markets.

U.S. and European stock investors bought beaten-down shares on Tuesday, at least temporarily looking past another steep drop in oil prices that briefly sent U.S. crude below $30 a barrel, accordin to Reuters.

Major U.S. stock indexes finished strong in a volatile trading session. The pan-European FTSEurofirst 300 index climbed 1.1 percent after four sessions of declines, it said.

AllianceDBS Research in ite evening edition Tuesday said that despite the weak down close in the preceding day, the FBM KLCI had on Jan 12 traded within previous day’s range to form an inside day bar as market participants decided not to stage an immediate follow through selling pressure.

It said in the absence of stronger selling interest, the benchmark index was in the green throughout the trading sessions before settling at 1,641.37 (up 3.78 points or 0.23%).

“In the broader market, losers outnumbered gainers with 470 stocks ending lower and 384 stocks finishing higher. That gave a market breadth of 0.81 indicating the bears were in control,” it said.  

AllianceDBS Research said that the downside violation of 1,650 on Jan 11 was viewed as a negative market development.

“However, we did not witness follow through selling activity.

“This can be evidenced from the inside day bar. An inside day bar indicated a pause in the game play with sellers not playing an aggressive selling game and buyers on the other hand also seen unwilling to take the chance to establish stock positions in a larger quantity for fear of more downside risk.

“Given the recent market action, the benchmark index is likely to drift lower again with support zone seen between 1,620 and 1,627,” it said.  

The research house said that the indicator wise, the MACD was below the 9-day moving average line, adding that the hurdle is pegged at 1,653.

“The analysis of overall market action on Jan 12 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,648.43 level on Jan 13,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, companies that may be in focus today could include the following: Malaysia Airports Holdings Bhd, Media Chinese International Ltd, Scanwolf Corporation Bhd, Esthetics International Group Bhd, Nylex (Malaysia) Bhd, Xin Hwa Holdings Bhd, Seacera Group Bhd, AirAsia X Bhd, Tropicana Corporation Bhd, Asdion Bhd and HeveaBoard Bhd.

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