The FBMKLCI declined 5.90pt to close at 1,738.18 yesterday, taking cues from the weaker external market. Meanwhile, the dollar slumped along with Japanese stocks as US President Donald Trump said the greenback was getting too strong and that he would not brand China a currency manipulator. The MSCI Asia Pacific Index rose 0.1%. The FBMKLCI’s top gainers were Genting Malaysia (+2.3%), IHH Healthcare (+0.66%) and Petronas Dagangan (+0.33%) while the top losers were IOI Corporation (-2.22%), CIMB Group Holdings (-1.6%) and Genting Bhd (-1.6%). In the broader market, losers outpaced gainers 765 to 220 with 305 counters unchanged. Turnover was 3.86b shares valued at RM2.59b. Given the declining buying interest, the FBMKLCI may consolidate lower on the back of uncertainties in the external market. We maintain a positive outlook on potential upside but the selling pressure must be fully absorbed in order for the index to go higher. We expect the uptrend to resume once the selling pressure eases. Support and resistance levels are still maintained as follows:

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

US equities slid as investors studied banking results from JPMorgan Chase and Citigroup. In Europe, stocks declined for the third time this week as banks fell. The S&P 500 lost 0.68% to 2,328. The benchmark slipped 0.4% on Wednesday, closing below its 50-day moving average for the first time since November, as investors assessed geopolitical developments from France to Russia and Korea. The Dow Jones Industrial Average lost 138.61 points to 20,453.25 on Thursday

Source: UOB Kay Hian Research - 14 Apr 2017