Our website is made possible by displaying online advertisements to our visitors.
Please consider supporting us by disabling your ad blocker.

KLCI to trend sideways, immediate hurdle at 1,748

TheEdge Wed, Jul 18, 2018 - 12 months ago


KUALA LUMPUR (July 18): The FBM KLCI is seen trending sideways today with immediate hurdle at 1,748.

The U.S. dollar rose on Tuesday against a basket of major currencies following an upbeat economic assessment from the head of the U.S. Federal Reserve, while world stocks climbed as a heavy week of corporate earnings also kicked into gear, according to Reuters.

Wall Street's main indexes erased losses from the start of the session to end solidly positive. The U.S. two-year Treasury yield rose to its highest level in nearly a decade, with the yield curve at its flattest in nearly 11 years, it said.

The Dow Jones Industrial Average rose 55.53 points, or 0.22 percent, to 25,119.89, the S&P 500 gained 11.12 points, or 0.40 percent, to 2,809.55 and the Nasdaq Composite added 49.40 points, or 0.63 percent, to 7,855.12, 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 July 17 traded higher to settle at the day’s high of 1,737.28 (up 10.61 points or 0.61%) in the last few minutes buying of selective blue chip stocks as market participants continued to play on the buying side in anticipation of a higher market.

“In the broader market, gainers outnumbered losers with 473 stocks ending higher and 376 stocks finishing lower. That gave a market breadth of 1.25 indicating the bulls were in better control,” it said.

AllianceDBS Research said the market made a higher high again for 6 consecutive days on July 17 with the benchmark index crossing into the 1,730 zone to reach a high of 1,737.28.

It said this suggested that market participants were still willing to play a buying game despite a simple calculation showing that the benchmark index has gained about 75 points in 6 market days measuring from the low of 1,662 on July 9 to the high of 1,737 on July 17.

The research house said a small profit activity may have been spotted in earlier trading session, but many market participants chose to ride on the positive market momentum created after the crossover of the 1,709 hurdle on July 13 as they were expecting the benchmark index to test 1,755 in the coming few days.

It said following the up close on July 17, there should be buying attempt with immediate hurdle at 1,748.

“The analysis of overall market action on July 17 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,737.28 level on July 18,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, companies that may be in focus today may include the following: Advancecon Holdings Bhd, Hiap Teck Venture Bhd, Poh Huat Resources Holdings Bhd, Velesto Energy Bhd, Barakah Offshore Petroleum Bhd, JAKS Resources Bhd, Star Media Group Bhd, Utusan Melayu (Malaysia) Bhd, Kumpulan Perangsang Selangor Bhd, My EG Services Bhd, Malaysia Airports Holdings Bhd and Kumpulan Jetson Bhd. 

 

 








Related Stocks

ADVCON 0.405
AIRPORT 8.560
BARAKAH 0.065
HIAPTEK 0.225
JAKS 0.795
JETSON 0.170
KPS 0.995
MYEG 1.570
POHUAT 1.530
STAR 0.635
UTUSAN 0.100
VELESTO 0.320

Comments

Login to comment.