The FBMKLCI fell 5.11pt to close at 1,717.36 yesterday. Meanwhile, Asian stocks fluctuated as investors await the Federal Reserve’s rate decision, while mainland China shares erased losses as Premier Li Keqiang played down the risk of a trade conflict with the US. The FBMKLCI’s top gainers were IJM Corporation (+1.5%), IHH Healthcare (+1.2%) and Hong Leong Bank (+0.4%) while the top losers were Petronas Dagangan (-1.8%), YTL Corporation (-1.4%) and Malayan Banking (-1.1%). In the broader market, losers outpaced gainers 480 to 395 with 386 counters unchanged. Turnover was 3.30b shares valued at RM2.23b. The FBMKLCI registered another “spinning top” pattern which hinted at the indecisive trading yesterday. The index failed to recover from earlier gains to close below the 7-day EMA lines, thus causing the short-term outlook to remain on a downside bias. The RSI line is still treading above 50pt despite the flat reading yesterday while weaker signals from the MACD suggest consolidation ahead. Support and resistance levels are as follows:

• Support: 1,700,1,690
• Resistance: 1,729, 1,745

US stocks closed higher on Wednesday as the Federal Reserve raised its benchmark interest rate by 25bp for the third time since 2015. The dot plot, a table of policy makers’ projections for short-term rates, showed more unity among the central bankers about their interest-rate forecast and indicated two more rate hikes this year. The DJIA gained 0.5% to settle at 20,950.10 and the S&P500 edged higher by 0.8%, to 2,385.26. The NASDAQ Composite index gained 0.7% to settle at 5,900.05. Rising stocks outnumbered declining ones on the NYSE by 2,766 to 475 and 26 ended unchanged. On the Nasdaq SE, 1,697 rose and 822 declined, while 108 ended unchanged.

Source: UOB Kay Hian Research - 16 Mar 2017