The FBMKLCI lost 5.96pt to close at 1,772.51 yesterday as extended profit-taking activity, particularly in the index-linked counters, sent the index lower after recording positive closings in the last few days. Meanwhile, Asian stocks outside Japan declined as Australian shares dropped before the US Federal Reserve’s rate decision. The MSCI Asia Pacific excluding Japan Index fell 0.2% as of 3:55 pm in Hong Kong, erasing earlier gains. The FBMKLCI’s top gainers were Petronas Gas (+1.1%), Hap Seng Consolidated (+1.0%) and Axiata Group (+0.77%), while the top losers were Westports Holdings (-2.8%), Genting Malaysia (-2.2 %) and Petronas Chemicals Group (-1.8%). In the broader market, losers outpaced gainers 535 to 391, with 392 counters unchanged. Turnover was 3.90b shares valued at RM3.04b. Crimped by the weaker performance of index-linked counters yesterday, the FBMKLCI was unable to push higher as selling pressure flooded the market yesterday. Nevertheless, as the index remains within the upward “price channel”, we remain optimistic. Normalisation of the current selling pressure may place the index back on an uptrend. Support and resistance levels are still maintained as follows:

• Support: 1,760,1,740
• Resistance: 1,787, 1,800

US stocks closed mostly lower on Wednesday after the Federal Reserve left interest rates unchanged, as widely expected, and deemed a recent patch of economic weakness as temporary. The main indices traded in a narrow range over the past several sessions, unable to break to new highs. The S&P 500 closed 3.06pt, or 0.1%, lower at 2,388.11. Earlier, the index was pressured by losses in Apple (-0.3%) but Apple recouped most of the losses to end only slightly lower. The Dow Jones Industrial Average closed virtually unchanged at 20,957.53. The Nasdaq Composite shed 22.82pt, or 0.4%, to 6,072.55, retreating from its record close on Tuesday.

Source: UOB Kay Hian Research - 4 May 2017