The FBMKLCI lost 3.12pt to close at 1,725.54 yesterday following profit-taking in blue chips after the recent rebound. Meanwhile, investors were in a holding pattern ahead of a Federal Reserve meeting in which policy makers are widely expected to raise interest rates, with global stocks directionless after retreating from a record high. The MSCI Asia Pacific Index fell 0.1%. The FBMKLCI’s top gainers were KLCC Property Holdings (+1.3%), Petronas Gas (+1.0%) and Genting Malaysia (+0.75%) while the top losers were IOI Corporation (-2.5%), CIMB Group Holdings (-1.5%) and Hong Leong Bank (-1.3%). In the broader market, gainers outpaced losers 472 to 370 with 416 counters unchanged. Turnover was 3.08b shares valued at RM2.45b. Despite the upward movement during last few trading days, the FBMKLCI was unable to continue moving up, and closed lower at 1,725.54 yesterday. This suggests investors remain cautious on the uncertain market. A Spinning Top pattern was spotted on the daily chart, suggesting that the index would be in sideways mode in the near term. However, if our index can maintain above 1,700 levels for the short to medium term, we expected the short-term to medium-term outlook to be on the bullish side. We maintain support and resistance levels as follows:

• Support: 1,700,1,690
• Resistance: 1,745, 1,760

On Wednesday, the DJIA and S&P 500 closed lower for a third consecutive session as oil prices fell and a stronger-than-expected report on private-sector employment helped to bolster expectations for an interest-rate hike next week. The DJIA lost 0.3% to settle at 20,855.73 and the S&P500 edged lower by 0.2% to 2,362.98. The NASDAQ Composite index rose 0.1% to 5,837.55. Falling stocks outnumbered advancing ones on the NYSE by 2,299 to 930 and 36 ended unchanged. On the Nasdaq SE, 1,427 fell and 1,075 advanced, while 118 ended unchanged

Source: UOB Kay Hian Research - 9 Mar 2017