The FBMKLCI closed marginally higher by 17.98pt to 1,715.67 yesterday in tandem with most Asian regional benchmark indices. Meanwhile, the bulls are gaining momentum as the Federal Reserve continues to drive the global equities rally. Tokyo shares jumped to the highest since Dec 15 while Australian equities rose the most in three months after US indexes set records on signs that growth is firming worldwide. The MSCI Asia Pacific Index increased 0.4%. The FBMKLCI’s top gainers were AMMB Holdings (+6.0%), RHB Bank (+2.8%) and Petronas Chemicals Group (+2.7%) while the top losers were IHH Healthcare (-1.0%) and Petronas Gas (-0.2%). In the broader market, gainers outpaced losers 595 to 308 with 369 counters unchanged. Turnover was 3.13b shares valued at RM3.05b. From a technical perspective, the FBMKLCI continued its impressive recovery after closing at 1,715.67 on yesterday’s movement. Strong gains on the back of high trading volume signify a short-term uptrend movement potentially prolonging the upward movement. Meanwhile, the index managed to penetrate the psychological level of 1,700 yesterday However, the remarkable gains in the last few days may attract conservative investors to lock in gains. Support and resistance levels are revised as follows:

• Support: 1,690,1,679
• Resistance: 1,721, 1,728

US stocks retreated from record levels to close lower on Thursday with the DJIA nearly finishing below the recently attained 21,000 level as financial stocks slumped and defensive sectors gained. The DJIA lost 0.5% to settle at 21,002.97 and the S&P500 edged lower by 0.6% to 2,381.92. The NASDAQ Composite index fell 0.7% to settle at 5,861.22. Falling stocks outnumbered advancing ones on the NYSE by 2,253 to 896 and 61 ended unchanged. On the Nasdaq Stock Exchange, 1,637 fell and 852 advanced, while 98 ended unchanged.

Source: UOB Kay Hian Research - 3 Mar 2017