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KLCI seen trending sideways, immediate hurdle at 1,809

TheEdge Thu, Aug 09, 2018 06:08am - 1 year ago

KUALA LUMPUR (Aug 9): The FBM KLCI is seen trending sideways today with immediate hurdle at 1,809 in line with the global markets where trade jitters kept sentiment in check.

Oil prices slumped on Wednesday after Chinese import data showed a slowdown in demand and weighed on world equity markets, which traded near break-even as U.S. technology shares extended recent gains, according to Reuters.

China announced retaliatory trade tariffs in response to the United States' decision to impose 25 percent tariffs on another $16 billion of Chinese goods starting on Aug. 23, it said.

The Dow Jones Industrial Average fell 45.16 points, or 0.18 percent, to 25,583.75. The S&P 500 lost 0.75 points, or 0.03 percent, to 2,857.7 and the Nasdaq Composite added 4.66 points, or 0.06 percent, to 7,888.33, said Reuters.

AllianceDBS Research in its evening edition Wednesday said that led by the up close in the preceding day, the FBM KLCI had on Aug 8 gapped up to cross into the 1,800 zone.

It said the benchmark index subsequently settled at the day’s high of 1,804.73 in the last few minutes buying of selective blue chip stocks.

“In the broader market, gainers outnumbered losers with 590 stocks ending higher and 322 stocks finishing lower. That gave a market breadth of 1.83 indicating the bulls were in better control,” it said.

AllianceDBS Research said the market saw follow through buying pressure on Aug 8 with the benchmark index traded into the 1,800 zone to reach a high of 1,804.73.

It said the market progressed well as market participants were buying into the market after the crossover of 1,788 on Aug 7.

“The willingness to join in the buying game can be seen from the upside gap created on the opening bell, which indicated the urgency on the part of the market participants to establish stock positions.

“A buying attempt with an opening level of 1,793.16, which was 1.18 points above the previous day’s high of 1,791.98, was initiated to pull up the benchmark index.

“As soon as the last selling order at 1,793.11 was filled, those aggressive buyers with unfilled buying orders chose to book the next available sellers in line.

“Many market participants were basically excited about this market development,” it said.

The research house said under the greater buying demand, the market began to ascent.

It said following the up close on Aug 8, there should be buying attempt with immediate hurdle at 1,809. 

“The analysis of overall market action on Aug 8 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,804.73 level on Aug 9,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, stocks in focus today may include the following: Gas Malaysia Bhd, Axis REIT, Perak Corp Bhd, Kelington Group Bhd, Zecon Bhd, IJM Corp Bhd, ECS ICT Bhd, DKSH Holdings (Malaysia) Bhd, MRCB-Quill REIT and AirAsia Group Bhd.

Related Stocks

DKSH 2.520
IJM 1.760
KGB 0.985
MQREIT 0.745
MRCB 0.515
VSTECS 1.510
ZECON 0.550


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