KUALA LUMPUR (Dec 10): Sentiment at the local bourse is expected to remain fragile today in line with the weaker overnight close at most global markets and the FBM KLCI is poised to extend its losses for a third day running.

Oil prices slipped on Wednesday, giving up gains after an early rebound on a drop in US crude oil inventories, while the dollar fell as investors betting against the euro were forced to reverse those positions following hawkish comments from a European policymaker, according to Reuters.

Wall Street ended lower, as the S&P 500 moved in tandem with oil prices through most of the day, and closed at a low not seen since Nov 13, it said.

AllianceDBS Research in its evening edition Wednesday said that dampened by the down close in the preceding day, the FBM KLCI had on Dec 9 opened the day on a weak note as market participants continued to play on the selling side in anticipation of a lower market.

It said that in the absence of strong supportive buying interest, the benchmark index was in the red throughout the trading sessions before settling at the day's low of 1,659.36 (down 9.88 points or 0.59%).

"In the broader market, losers outnumbered gainers with 435 stocks ending lower and 373 stocks finishing higher. That gave a market breadth of 0.85 indicating the bears were in control," it said.

AllianceDBS Research said following the lower high and lower low on Dec 9, the benchmark index had registered five down closes and only one up close in the last six days.

"This indicated that sellers were in control of the game play.

"Following the down close on Dec 9, sellers should continue [to] be seen in a dominant role with buyers still expected to stay [in the] sidelines at this juncture.

"Given the prevailing weak market sentiment, the benchmark index would be trading sideways between 1,655 and 1,688 in the coming few days," it said.

The research house said a fall below 1,655 could send the index down to the subsequent support at 1,645, adding that indicator wise, the MACD was below the nine-day moving average line.

"The analysis of overall market action on Dec 9 revealed that buying power was weaker than selling pressure.

"As such, the FBM KLCI would likely trade below the 1,659.36 level on Dec 10," said AllianceDBS Research.