KLCI may test resistance of 1,718

KUALA LUMPUR: JF Apex Research expects the FBM KLCI to retest its resistance of 1,718 on Tuesday and attempt to extend its record high.
It
said that overnight on Wall Street, US stocks finished near session
highs, with the S&P 500 setting a record close and the Nasdaq ending
at its best level since November 2000.
JF Apex Research said the
positive sentiment was underpinned by a better-than-expected pending
home sales report and after Italy's new prime minister named his cabinet
over the weekend, ending two months of political deadlock in the
nation.
Similarly, European shares closed higher on Monday,
boosted by the formation of a growth and reform-minded government in
Italy and hopes of central bank stimulus measures later this week.
"On
the local exchange, the KLCI fell 3.32 points to 1707.97 points.
Following the optimism in the US and Europe, the KLCI could retest its
resistance of 1718 points today and attempt to extend its record high,"
it said.
Stocks might attract investor interest include Sunway as
the group bagged a RM222mil building contract for a new mixed
commercial project at the eastern corner of KLCC.
As for Southern Steel, the group returned to the black with higher third quarter results.