The FBMKLCI closed marginally higher at 1,733.93 (+2.94pt, +0.2%) yesterday, backed by gains in selected blue chips. Meanwhile, the yen strengthened while Asian stocks were mixed as lingering geopolitical concerns offset data showing China’s economy accelerated for a second month. The MSCI Asia Pacific Index rose 0.4%. The FBMKLCI’s top gainers were CIMB Group Holdings (+1.3%), PPB Group (+1.1%) and RHB Bank (+0.8%) while the top losers were Genting Malaysia (-2.3%), Petronas Gas (-1.0%) and Astro Malaysia Holdings (-0.7%). In the broader market, gainers outpaced losers 456 to 397 with 381 counters unchanged. Turnover was 2.89b shares valued at RM1.78b. The FBMKLCI climbed higher yesterday in tandem with broader market performance as investors believe the recent correction is over. However, selling momentum has not yet fully normalised with the RSI still trading below the 50pt threshold as the FBMKLCI is still vulnerable to the next pullback. Nevertheless, the recent gain may give investors an opportunity to seek short-term swing trading in potential stocks. Support and resistance levels are still maintained as follows:

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

US stocks rebounded on Monday, notching their largest gains since 1 March, as financial shares led markets higher while investors monitored corporate earnings and the latest developments between the US and its geopolitical adversaries. The S&P 500 index climbed 20.06 pts, or 0.9%, to 2,349.01, while the Dow Jones Industrial Average rose 183.67 pts, or 0.9%, to 20,636.92. The Nasdaq Composite Index gained 51.64 pts, or 0.9%, to 5,856.79.

Source: UOB Kay Hian Research - 18 Apr 2017