KUALA LUMPUR (April 6): The FBM KLCI is seen trending higher today, in line with the overnight gains at most global markets with immediate hurdle at 1,841.

The U.S. dollar gained and equity markets around the world jumped on Thursday as fears eased of a trade war between China and the United States after Washington expressed a willingness to negotiate, according to Reuters.

The dollar rose to a three-week high against the Japanese yen and a 10-week peak versus the Swiss franc, two safe-haven assets that investors buy in times of market uncertainty, it said.

On Wall Street, the Dow Jones Industrial Average closed up 240.92 points, or 0.99 percent, to 24,505.22. The S&P 500 gained 18.15 points, or 0.69 percent, to 2,662.84 and the Nasdaq Composite added 34.45 points, or 0.49 percent, to 7,076.55, said Reuters.

AllianceDBS Research in its evening edition Thursday said despite the down close in the preceding day, the FBM KLCI had on April 5 traded within previous day’s range to form an inside day bar as market participants decided not to stage an immediate selling pressure.

It said in the absence of stronger selling interest, the benchmark index was in the green throughout the trading sessions before settling near the day’s high at 1,836.13 (up 20.19 points or 1.11%).

“In the broader market, gainers outnumbered losers with 660 stocks ending higher and 344 stocks finishing lower. That gave a market breadth of 1.91 indicating the bulls were in better control,” it said.

AllianceDBS Research said the market saw no follow through selling activity on April 5 with the benchmark index forming an inside day bar.

“The inside day bar indicated a pause in the game play.

“It was a surprise NOT to see another sell down on April 5 as the selling supply on April 4 was so overwhelming that market continued to drift lower and lower when sellers were chasing after the diminishing buying demand.

“In reaction to the external positive market development, the positive opening level on April 5 had averted another immediate risk of falling further.

“It had also helped to recover some of the lost ground during the sell-off on April 4,” it said.

The research house said following the up close on April 5, there should be buying attempt with immediate hurdle at 1,841.

It said a crossover of 1,841 would lift the market to the next resistance selling area at 1,851.

“The analysis of overall market action on April 5 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,838.81 level on April 6,” said AllianceDBS Research.

Based on corporate announcements and newsflow yesterday, stocks that could be in focus today include Malaysian Resources Corp Bhd, Gamuda Bhd, YTL Corporation Bhd, Perak Corp Bhd, Protasco Bhd, GHL Systems Bhd, Dialog Group Bhd and China Ouhua Winery Holdings Ltd.