KUALA LUMPUR (Jan 4): The FBM KLCI is expected to trend lower today, in line with the overnight slump at most global markets, with immediate support at 1,658.

A revenue warning from Apple Inc rocked equity markets around the globe on Thursday as concerns over the damaging China-U.S. trade battle and its impact on world economic growth boosted assets considered safer investments, such as bonds and the Japanese yen, according to Reuters.

Technology stocks led a selloff in equities after Apple, blaming weaker iPhone sales in China, late on Wednesday cut its revenue forecast for the first time in nearly 12 years. Apple's U.S.-listed shares closed down 10 percent, it said.

In the U.S. equity market, the Dow Jones Industrial Average fell 660.02 points, or 2.83 percent, to 22,686.22, the S&P 500 lost 62.14 points, or 2.48 percent, to 2,447.89 and the Nasdaq Composite dropped 202.43 points, or 3.04 percent, to 6,463.50, said Reuters.

AllianceDBS Research in its evening edition yesterday said the FBMKLCI had on Jan 3 formed an inside day bar as market participants decided not to stage a follow through selling pressure.

It said in the absence of stronger selling interest, the benchmark index was in the green throughout most of the trading sessions before settling at 1,675.83 (up 7.72 points or 0.46%).

“In the broader market, losers outnumbered gainers with 367 stocks ending lower and 366 stocks finishing higher. That gave a market breadth of 0.99 indicating the bears were in better control with the bulls closely matched,” it said.

AllianceDBS Research said the inside day bar indicated a pause in the game play.

“It was indeed a surprise not seeing a lower low on Jan 3 given the down close on Jan 2.

“In the hope to pull the benchmark index away from the immediate risk of triggering a snow ball rolling effect, a buying attempt with an opening level of 7.05 points higher than previous day’s close was initiated.

“This uplifting move had helped to alleviate the urgency on the part of the market participants to sell aggressively. The higher low may be encouraging, but it remained premature to confirm anything at this juncture as market participants was generally still looking to minimize distractions,” it said.

The research house said following the off day’s high up close on Jan 3, there should be selling attempt with immediate support at 1,658.

A fall below 1,658 would see a test of next support at 1,642, it said.

“The analysis of overall market action on Jan 3 revealed that buying power was weaker than selling pressure.

“As such, the FBMKLCI would likely trade below the 1,666.22 level on Jan 4,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, stocks in focus today may include the following: UMW Holdings Bhd, Star Media Group Bhd, Ecobuilt Holdings Bhd, Unisem (M) Bhd, Kejuruteraan Asastera Bhd, Ahmad Zaki Resources Bhd, AMMB Holdings Bhd, S P Setia Bhd and United Malacca Bhd.