Friday 29 Mar 2024
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KUALA LUMPUR (Sept 21): The FBM KLCI is seen extending its consolidation mode today, with immediate support at 1,793.

World stock markets rallied on Thursday, while the U.S. dollar slipped, amid expectations that fresh U.S. and Chinese tariffs on reciprocal imports will be less harsh than feared, according to Reuters.

Still, investors remained cautious about the next steps in the U.S.-Sino trade war, driving long-dated U.S. Treasury yields lower. But the equity market's early take of the latest trade moves was that it was mostly benign for the U.S. economy, it said.

On Wall Street, the Dow Jones Industrial Average rose 220.45 points, or 0.83 percent, to 26,626.21. The S&P 500 gained 17.11 points, or 0.59 percent, to 2,925.06 and the Nasdaq Composite added 60.28 points, or 0.76 percent, to 8,010.31, said Reuters.

AllianceDBS Research in its evening edition Thursday said that led by the up close in the preceding day, the FBM KLCI had on Sept 20 traded higher to 1,810.21 as market participants continued to play on the buying side in anticipation of a higher market.

It said under the persistent buying interest, the benchmark index kept its position in the green zone throughout the trading sessions before settling near the day’s low at 1,803.70 (up 2.99 points or 0.17%).

“In the broader market, losers outnumbered gainers with 412 stocks ending lower and 404 stocks finishing higher. That gave a market breadth of 0.98 indicating the bears were in better control with the bulls closely matched,” it said.

AllianceDBS Research said the market made a higher high again on Sept 20 with the benchmark index rising to a high of 1,810.21.

It said this suggested that there were more willing buyers than willing sellers in the game play.

“Like the market on Sept 19, a buying attempt with an opening level of 3.3 points higher than previous day’s settlement of 1,800.71 was initiated.

“This had paved a road for an upward move, because we saw no immediate strong selling pressure to take advantage of the high opening level to sell.

“Moreover, the crossover of 1,805.65 registered on 19 September 2018 helped to boost the buying confidence,” it said.

However, the research house said the market ran into resistance in the selling supply zone, 1,809 - 1,813.

It said following the weak up close on Sept 20, there should be selling attempt with immediate support at 1,793.

“The analysis of overall market action on Sept 20 2018 revealed that buying power was weaker than selling pressure.

“As such, the FBM KLCI would likely trade below the 1,803.06 level on Sept 21,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, stocks in focus today may include the following: Scientex Bhd, Malaysia Smelting Corp Bhd, Eco World International Bhd, Pos Malaysia Bhd, AWC Bhd, Wong Engineering Corp Bhd, Dufu Technology Corp Bhd, Selangor Properties Bhd, SCGM Bhd and Pan Malaysia Corp Bhd. 

 

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