Wednesday 21 Feb 2024
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KUALA LUMPUR (Feb 26): The FBM KLCI is expected to trade sideways today following the firmer overnight close at most global equity markets.

Global equity markets got a boost from an upturn in crude oil on Thursday as the market focused on an upcoming meeting of major oil producers that investors hope could stabilize volatile petroleum markets, according to Reuters.

U.S. stock indexes were also buoyed by robust data on durable goods orders that pointed to a recovery in the struggling manufacturing sector, it said.

AllianceDBS Research in its evening edition Thursday said that dampened by the down close in the preceding day, the FBM KLCI had on Feb 25 opened the day on a flattish note.

It said the benchmark index subsequently traded to 1,672.56 as some market participants took the chance to play on the buying side.

The research house however said renewed selling pressure chipped in to push the benchmark index down to settle at the day’s low of 1,658.16 (down 6.01 points or 0.36%).

“In the broader market, losers outnumbered gainers with 565 stocks ending lower and 271 stocks finishing higher. That gave a market breadth of 0.47 indicating the bears were in control,” it said.

AllianceDBS Research said the lower low on Feb 25 was not a surprise because the downside violation of 1,670 on Feb 24 was not perceived to be a positive market development.

“In the eyes of many market participants, the present market environment is treacherous.
 

“It is not advisable for them to hold onto their long positions for long.

“Moreover, they knew the importance of getting the right perspective to start every day as they wanted to be better prepared to tackle the challenges faced in day trading,” it said.

The research house said following the down close, the market is likely to come under pressure to trade lower again with immediate support at 1,658.

It said a fall below 1,658 could send the index down to the subsequent support at 1,650, adding that indicator wise, the MACD was still marginally above the 9-day moving average line.

“The analysis of overall market action on Feb 25 revealed that buying power was weaker than selling pressure.

“As such, the FBM KLCI would likely trade below the 1,658.16 level on Feb 26,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, companies that will be in focus today may include: Malayan Banking Bhd, CIMB Group Holdings Bhd, OSK Holdings Bhd, UOA Development Bhd, Bonia Corporation Bhd, SP Setia Bhd, ECM Libra Finanial Group Bhd, Scomi Group Bhd, IHH Healthcare Bhd, 7-Eleven Malaysia Holdings Bhd, DRB-Hicom Bhd, IJM Corporation Bhd, Oldtown Bhd, Mitrajaya Holdings Bhd, Taliworks Corporation Bhd, UMW Holdings Bhd, Sunway Construction Group Bhd, UEM Sunrise Bhd, Aeon Co (M) Bhd and YTL Corporation Bhd.

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