KUALA LUMPUR (Jan 14): The FBM KLCI is seen trending sideways today, in line with flat close at Wall Street last Friday, with immediate hurdle at 1,695.
Wall Street ended little changed on Friday, taking a breather following a five-day winning streak, while the dollar rebounded against most currencies from earlier losses tied to expectations the U.S. central bank is in no hurry to raise interest rates, according to Reuters.
Earlier weakness in stocks and data showing a decline in U.S. consumer prices in December stoked investor appetite for Treasuries, pushing their yields lower, it said.
The Dow Jones Industrial Average fell 5.97 points, or 0.02 percent, to 23,995.95, the S&P 500 lost 0.38 point, or 0.01 percent, to 2,596.26 and the Nasdaq Composite dropped 14.59 points, or 0.21 percent, to 6,971.48, said Reuters.
AllianceDBS Research in its evening edition last Friday said led by the up close in the preceding day, the FBMKLCI had on Jan 11 traded higher to 1,684.99 as market participants chose to play on the buying side in anticipation of a higher market.
It said under the persistent buying interest, the benchmark index was in the green throughout most of the trading sessions before settling near the day’s high at 1,683.22 (up 4.34 points or 0.26%).
“In the broader market, gainers outnumbered losers with 569 stocks ending higher and 294 stocks finishing lower. That gave a market breadth of 1.93 indicating the bulls were in better control,” it said.
AllianceDBS Research said the market made a higher high on Jan 11 with the benchmark index reaching a high of 1,684.99.
It said a buying attempt with an opening level of 6.11 points higher than previous day’s settlement was initiated in a hope to pull the market away from the immediate risk of breaking on the downside.
“Market trading activity may have confined in a small range, but, the minority well-informed market participants were seen on a look out for hot trades with calculated risk.
“This is to ensure financial survival in the stock market should unexpected negative market development occur,” it said.
The research house said following the up close on Jan 11, there should be buying attempt with immediate hurdle at 1,695.
“The analysis of overall market action on Jan 11 revealed that buying power was stronger than selling pressure.
“As such, the FBMKLCI would likely trade above the 1,684.99 level on Jan 14,” said AllianceDBS Research.
Based on corporate announcements and news flow last Friday, companies that may be in focus today may include the following: Genting Bhd, Poh Kong Holdings Bhd, Scomi Energy Services Bhd, Perisai Petroleum Bhd, Tatt Giap Group Bhd, APFT Bhd, Spring Gallery Bhd and Green Packet Bhd.