KLCI seen mixed in line with global equities

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KUALA LUMPUR (Feb 27): The FBM KLCI is seen mixed today in line with global equity markets that dipped overnight as a pullback in oil prices put a dampener in investor sentiment.

Global equities dipped on Thursday as investor enthusiasm was dampened by a pullback in oil prices related to rising inventories, while the dollar rose as economic data drove expectations that the Federal Reserve will raise interest rates. according to Reuters.

The U.S. S&P 500 ended down, led by an 1.8 percent drop in energy shares. Brent crude settled down 2.6 percent and U.S. crude fell 5.5 percent, it said.

AllianceDBS Research in its evening edition Thursday said the FBM KLCI had on Feb 26 traded higher to a high of 1,821.67 as market participants bought into the market in anticipation of a higher market.

It said Under the stronger supportive buying interest, the benchmark index kept its position firm throughout most of the trading sessions before settling near the day’s high at 1,820.87 (+5.01 , +0.28%).

 

"In the broader market, gainers outnumbered losers with 503 stocks ending higher and 347 stocks finishing lower. That gave a market breadth of 1.44 indicating the bulls were in control," it said.

 
AllianceDBS Research said the higher high on Feb 26 indicated that buyers were in better control over the sellers.

It said following the crossover of 1,818, the benchmark index should trade up north again in the coming few days with an eye to test the recent high of 1,831 (4 Feb 2015).

The research house said the support was at 1,818, adding that a fall back below the 1,818 level would see further consolidation between 1,800 and 1,818.

Indicator wise, the MACD is above the 9-day moving average line, it said.

"The analysis of overall market action on Feb 26 revealed that buying power was stronger than selling pressure.

"As such, the FBM KLCI would likely trade above the 1,821.67 level on Feb 27," said AllianceDBS Research.