Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 24): The FBM KLCI is expected to trend higher today in line with overnight gains at most global markets, with immediate hurdle seen at 1,841.

World stock markets broadly edged higher on Tuesday, with the U.S. market getting a lift from upbeat earnings from companies such as Netflix, while the U.S. dollar slipped to a three-year low against a basket of major currencies, according to Reuters.

Helping the positive tone for stocks was relief over Monday's temporary U.S. government funding deal, which boosted confidence about global growth and corporate earnings, it said.

The Dow Jones Industrial Average fell 5.14 points, or 0.02 percent, to 26,209.46, the S&P 500 gained 5.9 points, or 0.21 percent, to 2,838.87 and the Nasdaq Composite added 48.51 points, or 0.65 percent, to 7,456.54, said Reuters.

AllianceDBS Research in its evening edition Tuesday said that led by the up close in the preceding day, the FBM KLCI had on Jan 23 only traded to a low of 1,830.98.

It said in the absence of stronger selling interest, supportive buying interest chipped in to lift the market higher before settling at the day’s high of 1,838.04 (up 4.89 points or 0.27%) in the last few minutes buying of selective blue chip stocks.

“In the broader market, gainers outnumbered losers with 649 stocks ending higher and 357 stocks finishing lower. That gave a market breadth of 1.81 indicating the bulls were in better control,” it said.

AllianceDBS Research said the market made a higher high again on Jan 23 with the benchmark index hitting a day’s high of 1,838.04.

“There was a good attempt to pull the market upward on the opening bell, but many market participants were again seen unwilling to play a buying game at that time because market participants basically did not want to gamble on the market continuing to move much higher given the immediate hurdle at 1,841.

“However, the lack of selling interest in the area of 1,830.98 gave rise a chance to the aggressive market participants to lift the market higher,” it said.  

The research house said following the last few minutes buying of selective blue chip stocks to settle the market at the day’s high of 1,838.04 on Jan 23, there should be buying attempt with immediate hurdle at 1,841.     

“The analysis of overall market action on Jan 23 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,838.04 level on Jan 24,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, stocks in focus today may include: KPJ Healthcare Bhd, DiGi.Com Bhd, IGB Real Estate Investment Trust, Axis Real Estate Investment Trust, Caring Pharmacy Group Bhd, TH Heavy Engineering Bhd, Hengyuan Refining Co Bhd, Seacera Group Bhd, Crest Builder Holdings Bhd, Pos Malaysia Bhd, Lotte Chemical Titan Holding Bhd, Samchem Holdings Bhd, DRB-Hicom Bhd, Asiamet Education Group Bhd, Green Packet Bhd and Cabnet Holdings Bhd.

 

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