Market Preview KLCI to end week on firmer note

by **Cals** Sat 01 Nov 2014, 22:52

Market Preview
KLCI to end week on firmer note

KUALA LUMPUR (Oct 31): The FBM KLCI is expected to end the week and month today on a slightly firmer note, riding on the higher overnight closing at Wall Street.
U.S. stocks rose on Thursday, boosted by a strong reading on quarterly economic growth and by another round of upbeat earnings reports including Visa, which accounted for nearly 140 points in the Dow industrials, according to Reuters.
Despite the bullish data and the Federal Reserve's Wednesday statement indicating the economy is strengthening, gains on the S&P 500 were led by healthcare and utilities, traditionally defensive sectors, it said.
AllianceDBS Research in its evening edition Oct 30 said that led by the up close in the preceding day, the FBMKLCI had on Thursday crossed into the 1,840 zone to reach a high of 1,843.89 as market participants continued to play on the buying side in anticipation of a higher market.
The research house said that under the supportive buying interest, the benchmark index held its position well throughout the trading sessions before settling near the day’s high at 1,842.78 (+3.23, +0.18%).
It said that in the broader market, gainers outnumbered losers with 509 stocks ending higher and 339 stocks finishing lower.
That gave a market breadth of 1.50 indicating the bulls were in control, it said.
AllianceDBS Research said while the market was now entering into an overbought zone, buyers were still in better control over sellers.
“The support zone is pegged between 1,820 and 1,829. Indicator wise, the MACD is above the 9-day moving average line.
“The analysis of overall market action on 30 Oct 2014 revealed that buying power was stronger than selling pressure.
“As such, the FBM KLCI would likely trade above the 1,843.89 level on 31 Oct 2014.