Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 25): The FBM KLCI is expected to trend sideways today with immediate hurdle at 1,733.

Stocks rose in major markets across the world on Friday on bets of progress in trade talks between China and the United States, while crude futures hit their highest level in more than three months supported by ongoing supply cuts, according to Reuters.

U.S. President Donald Trump said on Friday that there was a very good chance the United States would strike a deal with China to end their trade war and that he was inclined to extend his March 1 deadline to reach an agreement, it said.

The Dow Jones Industrial Average rose 181.18 points, or 0.7 percent, to 26,031.81, the S&P 500 gained 17.79 points, or 0.64 percent, to 2,792.67 and the Nasdaq Composite added 67.84 points, or 0.91 percent, to 7,527.55, said Reuters.

AllianceDBS Research in its evening edition last Friday said the FBM KLCI had on Feb 22 traded higher to 1,732.27.

However, it said there was no follow through buying interest at 1,732.27.

It said this induced profit taking activity, which pushed the market down to 1,716.17 before settling at 1,721.42 (down 9.26 points or 0.54%).

“In the broader market, losers outnumbered gainers with 611 stocks ending lower and 290 stocks finishing higher. That gave a market breadth of 0.47 indicating the bears were in control,” it said.

AllianceDBS Research said the market made a higher high on Feb 22, but the benchmark index only reached a high of 1,732.27.

It said a selling attempt with an opening level of 0.17 point lower than previous day’s close of 1,730.68 was initiated after the last few minutes buying of selective blue chip stocks to settle the market at the high of the day on Feb 21.

“As soon as the last buying order was filled at 1,732.27, aggressive market participants that missed their selling orders at 1,732.27 decided to chase the next buyer in-line.

“This led to an increasing selling supply. Under the excessive selling supply, the benchmark index fell to a low of 1,716.17.

“In fact, the lower low on Feb 22 did not come as a surprise for the market had chalked up 49.46 points in 6 days measuring from the day’s low of 1,682..81 (Feb 14) to the day’s high of 1,732.27 (Feb 22),” it said.

The research house said following the down close on Feb 22, there should be selling attempt with immediate hurdle at 1,733.

“The analysis of overall market action on Feb 25 revealed that buying power was weaker than selling pressure.

“As such, the FBM KLCI would likely trade below the 1,716.17 level on Feb 26,” said AllianceDBS Research.

Based on corporate announcements and news flow today, stocks in focus on today may include: MISC Bhd, Malakoff Corp Bhd, Petra Energy Bhd, Malaysia Smelting Corp Bhd, Dayang Enterprise Holdings Bhd, Axiata Group Bhd, London Biscuits Bhd, Tune Protect Bhd, Eastern & Oriental Bhd, MGB Bhd and LBS Bina Group Bhd.

 

 

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