KUALA LUMPUR (April 25): The FBM KLCI is expected to stay tentative today and take cue from the global markets for direction, after the fla close at Wall Street last Friday.

The U.S. dollar rose to a three week high against the yen on Friday, on a report of likely further monetary policy easing from the Bank of Japan, while a rise in crude oil prices was offset by poor technology sector earnings, leaving Wall Street stocks steady, according to Reuters.

The dollar rose more than 2.0 percent against the yen to 111.80 yen, its highest level since April 1 after a media report said the BOJ is considering expanding its negative rate policy to bank loans and could cut rates further, it said.

AllianceDBS Research in its evening edition last Friday said despite the day’s high up close in the preceding day, the FBM KLCI had on April 22 traded within previous day’s range to form an inside day bar as market participants decided not to stage an immediate follow through buying support.

It said that in the absence of stronger buying interest, the benchmark index was in the red throughout the trading sessions before settling at 1,717.96 (down 3.51 points or 0.20%). 

“In the broader market, losers outnumbered gainers with 396 stocks ending lower and 378 stocks finishing higher. That gave a market breadth of 0.95 indicating the bears were in control,” it said.

AllianceDBS Research said the inside day bar is believed to be largely owing to the non-convincing up close lifted by the last few minutes buying of selective blue stocks on April 21.

“Given such a setup, the market would thus have to spend a little time between 1,709 and 1,722 in an attempt to consolidate its position inside a smaller platform.

“A small consolidation platform can be viewed a positive market development if it helps to neutralise the market weakness presented by the lower lows from April 18 to April 21,” it said.

The research house said a crossover of 1,722 would see the market gearing towards the next hurdle at 1,727.

Conversely, it said a fall below 1,709 would send the market back down to the recent low of 1,704.

The research house said that indicator wise, the MACD was below the 9-day moving average line.

“The analysis of overall market action on April 22 revealed that buying power was weaker than selling pressure.

“As such, the FBM KLCI would likely trade below the 1,715.18 level on April 25,” said AllianceDBS Research.

Based on corporate announcements and news flow last Friday, companies that might be in focus today include the following: JCY International Bhd, Menang Corp Bhd, Maxis Bhd, DiGi.Com Bhd, MISC Bhd, Success Transformer Corp Bhd, Bina Puri Holdings Bhd, Ipmuda Bhd, Len Cheong Holding Bhd, Eduspec Holdings Bhd, Tanah Makmur Bhd, Olympia Industries Bhd, DutaLand Bhd, Damansara Realty Bhd and Kumpulan Powernet Bhd.