The FBMKLCI closed marginally higher at 1,691.24 (+6.23pt, +0.37%) yesterday, backed by gains in selected blue chips. Meanwhile, Asian shares rose following a rally in US equities as President Trump moved toward looser regulation of the financial industry. The MSCI Asia Pacific Index advanced 0.4%. The FBMKLCI’s top gainers were Kuala Lumpur Kepong (+2.7%), Axiata Group (+2.6%) and Petronas Chemicals Group (+2.1%) while the top losers were British American Tobacco (-1.8%), Hong Leong Bank (-1.0%) and Genting Malaysia (-0.99%). In the broader market, gainers outpaced losers 622 to 286 with 341 counters unchanged. Turnover was 2.62b shares valued at RM2.32b. In line with our earlier expectation, the FBMKLCI continued to form a higher high to close at 1,691.24 yesterday. The uptick in RSI suggests buying pressure has started to gain traction, which could lead to further upside in the near term. We expect the index will continue the upwards movement towards the psychological resistance level of 1,700. We maintain our support and resistance levels as follows:

• Support: 1,658,1,651
• Resistance: 1,700,1,721

Energy companies led US stock indexes lower on Monday as the price of crude oil declined. Phone company and materials stocks were also among the big decliners. Investors were weighing the latest batch of company earnings news. The DJIA lost 0.09% to settle at 20,052.42 and the S&P500 edged lower by 0.21% to 2,292.56. The NASDAQ Composite index lost 0.06% to settle at 5,663.55. Falling stocks outnumbered advancing ones on the NYSE by 1957 to 1256 and 44 ended unchanged. On the Nasdaq SE, 1575 fell and 934 advanced, while 98 ended unchanged.

Source: UOB Kay Hian Research - 7 Feb 2017