KLCI seen trading range bound, immediate hurdle at 1,700

KLCI seen trading range bound, immediate hurdle at 1,700

KLCI seen trading range bound, immediate hurdle at 1,700

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KUALA LUMPUR (Nov 23): The FBM KLCI is seen trading range bound today with immediate hurdle at 1,700-point level.

Europe's share markets fell back into the red on Thursday, as investor worries about slowing global growth in the face of rising U.S. interest rates and trade tensions outweighed crucial Brexit progress, according to Reuters.

Chinese markets had extended their slump in Asia amid the trade war with the United States, and with Wall Street closed later for Thanksgiving and trading therefore lighter than normal, Europe followed suit, it said.

AllianceDBS Research in its evening edition Thursday said the FBM KLCI had on Nov 22 traded lower to 1,689.03.

It said under the persistent selling interest, the benchmark index was in the red throughout most of the trading sessions before settling at 1,695.62 (up 0.25 points or 0.01%).

“In the broader market, losers outnumbered gainers with 484 stocks ending lower and 310 stocks finishing higher. That gave a market breadth of 0.64 indicating the bears were in better control,” it said.

AllianceDBS Research said the market registered a marginal lower low of 1,689.09 on Nov 22.

It said market participants were more willing to play a selling game since the downside violation of the 1,700 level on Nov 21 was viewed negative for market development.

“However, the inability on the part of the market to go below 1,689.03 saw supportive interest lifting the benchmark index back up to fill the downside gap created on Nov 21.

“A study of the way this market carried itself on Nov 22 revealed that market participants were not in a hurry to sell down the market despite the bearish environment.

“Thus, a return of the benchmark index above the 1,700 level would see the market paving its way to trade upward,” it said.

The research house said following the up close on Nov 22, there should be buying attempt with immediate hurdle at 1,700.

“The analysis of overall market action on Nov 22 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,701.74 level on Nov 23,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, stocks in focus today may include: AMMB Holdings Bhd, Serba Dinamik Holdings Bhd, Kenanga Investment Bank Bhd, Malaysian Resources Corp Bhd, MBM Resources Bhd, Boustead Plantations Bhd, HeveaBoard Bhd, Allianz Malaysia Bhd and Press Metal Aluminium Holdings Bhd.