KUALA LUMPUR (Nov 12): The FBM KLCI is expected to trade range bound today with immediate support zone at 1,696 – 1,700, in line with the weaker close at most global markets last Friday and the prevailing cautious sentiment across world stock exchanges.

Stocks around the globe were closing in on their biggest drop in two weeks as soft Chinese data hit demand for risky assets while oil prices weakened again on Friday, according to Reuters.

U.S. stocks were broadly lower, with energy shares falling more than 1 percent as benchmark Brent crude touched a six-month low and U.S. crude fell below $60 for the first time since March after entering a bear market on Thursday, it said.

The Dow Jones Industrial Average fell 239.43 points, or 0.91 percent, to 25,951.79, the S&P 500 lost 36.54 points, or 1.30 percent, to 2,770.29 and the Nasdaq Composite dropped 162.14 points, or 2.15 percent, to 7,368.75, said Reuters.

AllianceDBS Research in its evening edition last Friday said that dampened by the down close in the preceding day, the FBM KLCI had on Nov 9 traded lower to 1,705.10 as market participants continued to play on the selling side in anticipation of a lower market.

It said under the persistent selling interest, the benchmark index was in the red throughout the trading sessions before settling off the day’s low at 1,708.09 (down 13.33 points or 0.77%) ahead of weekend.

“In the broader market, losers outnumbered gainers with 567 stocks ending lower and 244 stocks finishing higher. That gave a market breadth of 0.43 indicating the bears were in better control,” it said.

AllianceDBS Research said the market saw selling activity on Nov 9 with the benchmark index breaking the 1,715 support to reach a low of 1,705.10.

It said a selling attempt with an opening level of 2.14 points lower than the previous day’s settlement of 1,721.42 was initiated after the weak up close on Nov 8.

“The sell down did not come as a surprise since the market was still in a consolidation phase.

“On the other hand, the benchmark index may have regained its position above the 1,700 level since Oct 31, but market participants had chosen to follow a rule-based strategy with good discipline.

“Market participants knew when to change their game play pattern from an uncalculated risk to high probability market speculation,” it said.

The research house said following the down close on Nov 9, there should be selling attempt with immediate support zone, 1,696 – 1,700.

 “The analysis of overall market action on Nov 9 revealed that buying power was weaker than selling pressure.

“As such, the FBM KLCI would likely trade below the 1,705.10 level on Nov 12,” said AllianceDBS Research.

Based on corporate announcements and news flow last Friday, stocks in focus today may include Straits Inter Logistics Bhd, Pintaras Jaya Bhd, Sapura Energy Bhd, Caely Holdings Bhd, Marco Holdings Bhd, Symphony Life Bhd, Eastern & Oriental Bhd and OSK Ventures International Bhd.