KUALA LUMPUR (Jan 18): The FBM KLCI is expected to trend sideways today, with immediate hurdle seen at 1,831 points.
World shares inched higher on Wednesday as a rebound in technology shares lifted Wall Street, while the dollar relinquished early gains to trade lower after a report suggested a deal to prevent a U.S. government shutdown could be at risk, according to Reuters.
In the U.S. equity market, tech shares led the advance, including IBM, which surged 2.9 percent to $168.66 after Barclays upgraded the stock two notches to "overweight" ahead of its quarterly results on Thursday. The S&P technology sector gained 1.22 percent, it said.
The Dow Jones Industrial Average rose 258.7 points, or 1 percent, to 26,051.56, the S&P 500 gained 24.38 points, or 0.88 percent, to 2,800.8 and the Nasdaq Composite added 66.69 points, or 0.92 percent, to 7,290.38, said Reuters.
AllianceDBS Research in its evening edition Wednesday said the FBM KLCI had on Jan 17 traded higher to settle at the day’s high of 1,828.63 (up 2.60 points or 0.14%) in the last few minutes buying of selective blue chip stocks.
“In the broader market, losers outnumbered gainers with 678 stocks ending lower and 321 stocks finishing higher. That gave a market breadth of 0.47 indicating the bears were in better control,” it said.
AllianceDBS Research said it was a little surprise to see a weak opening level on Jan 17, because the market rebound with a near day’s high on Jan 16 should have placed the benchmark index in a good position to test higher ground.
“In fact, there was a general fear of a sudden market turnaround to the downside.
“With the intention of certain market participants to keep the benchmark index from moving nearer to the 1,813 level and the unwillingness of many market participants to play an aggressive buying game in the area of 1,830, buyers and sellers would thus be expected to continue exchanging stock positions between 1,812 and 1,831 in the coming few days,” it said.
The research house said following the last few minutes buying of selective blue chip stocks on Jan 17, there should be buying attempt with immediate hurdle at 1,831.
“The analysis of overall market action on Jan 17 revealed that buying power was stronger than selling pressure.
“As such, the FBM KLCI would likely trade above the 1,828.63 level on Jan 18,” said AllianceDBS Research.
Based on corporate announcements and news flow yesterday, stocks in focus today may include the following: Vizione Holdings Bhd, D'nonce Technology Bhd, Dataprep Holdings Bhd, Adventa Bhd, Fajarbaru Builder Group Bhd, Mah Sing Group Bhd, Green Packet Bhd, Eversendai Corp Bhd, Maxis Bhd, Poh Kong Holdings Bhd and Tatt Giap Group Bhd.