KUALA LUMPUR (July 26): The FBM KLCI is seen trending range bound with immediate support at 1,761, given the bearish sentiment at the local market.

A set of strong U.S. earnings reports lifted the S&P 500 stock index to a record closing high on Tuesday, while oil prices rallied on Saudi Arabia's pledge to cut exports in August and copper hit a two-year high, according to Reuters.

The dollar edged up after hitting its lowest level since June 2016 as the Federal Reserve began a two-day policy meeting, it said.

The Dow Jones Industrial Average was up 100.26 points, or 0.47 percent, to 21,613.43, the S&P 500 gained 7.17 points, or 0.29 percent, to 2,477.08 and the Nasdaq Composite added 1.37 points, or 0.02 percent, to 6,412.17, 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 25 opened the day on a positive note.

The research house said the benchmark index subsequently traded higher to 1,766.47, but weak follow through buying interest prompted selling pressure to chip in.

It said this pushed the market down to 1,761.16 before settling off the day’s low at 1,763.34 (up 1.35 points or 0.08%).

“In the broader market, losers outnumbered gainers with 510 stocks ending lower and 329 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 made a higher high on July 25 with the benchmark index reached a high of 1,766.47.

“Given the crossover of the 1,761 hurdle on settlement basis on July 24, some market participants apparently had taken the chance to buy into the market.

“However, many market participants were still seen not that excited about the crossover of the 1,761 level at this juncture as they were not convinced of a market reversal.

“This was evidenced from the market fall back to the low of 1,761.16 after hitting the day’s high of 1,766.47,” it said.

The research house said that in other words, the market was going through a wild fluctuation which had made the trading environment a challenging one for the average market participants.

It said following the weak up close on July 25, there should be selling attempt with immediate support at 1,761.     

“The analysis of overall market action on July 25 revealed that buying power was weaker than selling pressure.

“As such, the FBM KLCI would likely trade below the 1,761.16 level on July 26,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, companies that may be in focus today may include the following: Public Bank Bhd, Malayan Banking Bhd, Serba Dinamik Holdings Bhd, AirAsia X Bhd, Premier Nalfin Bhd, Ajiya Bhd, Sasbadi Holdings Bhd, Gromutual Bhd, T7 Global Bhd and CCK Consolidated Holdings Bhd.