The FBMKLCI added 8,24pt to close at 1,744.08 yesterday due to buying interest in blue chip counters, after trading in negative territory for the past few days. Meanwhile, Asia stocks declined as South Korean shares fell on investors’ concern over geopolitical risk. Treasuries climbed amid growing caution about geopolitical risks and the path of US interest rates. The FBMKLCI’s top gainers were Petronas Chemicals Group (+2.23%), Axiata Group (+2.17%) and Genting Bhd (+2.04%) while the top losers were RHB Bank (-0.96%), Sime Darby (-0.21%) and Public Bank (-0.1%). In the broader market, losers outpaced gainers 506 to 427 with 349 counters unchanged. Turnover was 4.02b shares valued at RM2.40b. From a technical perspective, the FBMKLCI managed to close in positive mode even though the outlook for our index remains timid as a lack of catalysts pared down earlier gains. Based on the DMI, buying pressure still overcame selling pressure but we expect a sideways movement ahead with the benchmark index likely to consolidate further. Support and resistance levels are as follows:

• Support: 1,729,1,713
• Resistance: 1,760, 1,787

US stocks closed lower on Wednesday, led by losses in the basic materials, industrials and financials sectors. The Dow Jones Industrial Average lost 0.3%, the S&P 500 index fell 0.4% and the NASDAQ Composite index lost 0.5%. Falling stocks outnumbered advancing ones on the New York Stock Exchange by 2,154 to 1,048 and 41 ended unchanged. On the Nasdaq Stock Exchange, 1,728 fell and 746 advanced, while 113 ended unchanged.

Source: UOB Kay Hian Research - 13 Apr 2017