KUALA LUMPUR (July 13): The FBM KLCI is expected to open higher today with trading seen range-bound in line with the improved global equity market sentiment.
Global stock markets jumped while the euro rose broadly on Friday on optimism that last-minute concessions by Greek Prime Minister Alexis Tsipras would clinch a deal with the country's international creditors and save it from financial meltdown, according to Reuters.
U.S. stocks were up about 1 percent in early trading, following gains in both European and Asian equities, it said.
AllianceDBS Research in its evening edition last Friday said that led by the up close in the preceding day, the FBM KLCI had on July 10 filled the downside gap left behind on 8 Jul 2015.
The research house said the benchmark index subsequently reached a high of 1,720.82 as market participants continued to play on the buying side in anticipation of a higher market.
It said under the strong supportive buying interest, the benchmark index kept its position near the high end throughout the trading sessions before settling at 1,715.58 (+14.04, +0.83%).
“In the broader market, gainers outnumbered losers with 537 stocks ending higher and 283 stocks finishing lower. That gave a market breadth of 1.89 indicating the bulls were in control,” it said.
AlllianceDBS Research said that having regained its footing above the 1,700 level on July 9, the benchmark index continued to steer its way upward the next day with a day’s high of 1,720.82.
“The rally in the last 2 market days with a settlement above the 1,700 psychological level was encouraging despite the weak market sentiment because it has helped to contain the fear of immediate sell-off.
“Following the up close at 1,715.58 on 10 Jul 2015, the market is expected trade between 1,728 and 1,698 in the coming few days.
“A crossover of 1,728 should see the market moving towards the recent high of 1,738 (July 2),” it said.
The research house said that indicator wise, the MACD was staying marginally above the 9-day moving average line.
“The analysis of overall market action on July 10 revealed that buying power was stronger than selling pressure.
“As such, the FBM KLCI would likely trade above the 1720.82 level on July 13,” said AllianceDBS Research.