Sunday 04 Jun 2023
By /
main news image

KUALA LUMPUR (July 16): The FBM KLCI is likely to see some muted gains on a holiday-shortened trading day today in line with the overnight slip at Wall Street.

Trading on Bursa Malaysia will only be in the morning session today, as the local stock exchange will be closed in the afternoon being the eve of the Hari Raya Aidilfitri national holiday, starting off an extended weekend.

US stock prices slipped on Wednesday as weaker oil prices hurt energy shares, while uneasiness about a Greek government vote on whether it would accept tough terms for another bailout and protests against a debt deal spurred safe-haven bids for bonds, according to Reuters.

Oil prices fell more than 2% due to worries of growing supply from Iran following a landmark deal that would lift sanctions that have curbed its oil sales for several years, it said.

Following the up close in the preceding day, the FBM KLCI had on July 15 only traded to a low of 1,722.13 before rising higher.

With persistent buying support, the benchmark index held its positive position firm throughout the trading sessions before settling at the day’s high of 1,727.26 (+6.16 , +0.36%) with last few minutes buying of selective blue chips.

“In the broader market, gainers outnumbered losers with 376 stocks ending higher and 353 stocks finishing lower. That gave a market breadth of 1.06 indicating the bulls were in control with the bears closely matched,” it said.

AllianceDBS Research in its evening edition yesterday said the benchmark index has been trading quite positively in the last 5 days with buyers in better control over the sellers.

However, the research house said the buyers were seen to be conservative in their game play.

“This can be seen from the declining market volume during the same period.

“On this note, the market is expected to stay between 1,706 and 1,728.

“A rise above 1,728 should see the benchmark index gearing towards the next resistance at 1,739.

“Conversely, a fall below 1,706 could send the market down to the subsequent support at 1,698,” it said.

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

AllianceDBS Research said the analysis of overall market action on July 15 revealed that buying power was stronger than selling pressure.

“As such, the FBM KLCI would likely trade above the 1,727.26 level on July 16,” said AllianceDBS Research.

      Text Size