Friday 19 Apr 2024
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KUALA LUMPUR (April 22): While the FBM KLCI is expected to trend higher today on the back of its strong performance on Tuesday, some profit taking could halt its progress in line with the lacklustre overnight showing at Wall Street.

Major U.S. stock indexes lost ground on lackluster earnings reports on Tuesday, while oil fell on concerns about U.S. crude stockpiles and Saudi Arabia's announcement that it ended its military campaign in Yemen, according to Reuters.

European and other markets moved higher, and currency trading was choppy, it said.

AllianceDBS Research in it evening edition Tuesday said that led by the up close in the preceding day, the FBM KLCI had on April 21 overcame the 1,858 hurdle to settle at the day’s high of 1,862.80 (+ 14.14, + 0.76%) as market participants continued to play on the buying side in anticipation of a higher market.

“In the broader market, gainers outnumbered losers with 536 stocks ending higher and 359 stocks finishing lower. That gave a market breadth of 1.49 indicating the bulls were in control,” it said.

AllianceDBS Research said the higher high on April 21 was encouraging, because the benchmark index crossed over the 1,856 - 1,858 zone with explosive volume after several unsuccessful attempts.

“Following the strong up close on April 21, we should see follow through buying momentum to carry the market into a higher level again with an immediate hurdle at 1,865.

“An upside penetration of 1,865 is expected to pave the way towards the next hurdle at 1,880. The support zone is now pegged between 1,856 and 1,858,” it said.

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

“The analysis of overall market action on April 21 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,862.80 level on April 22,” said AllianceDBS Research.

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