The FBMKLCI closed marginally higher by 0.48pt to 1,775.87 last Friday. Meanwhile, Asian shares pared a weekly gain as markets pulled back from multi-year highs amid disappointing earnings. The MSCI Asia Pacific Index fell 0.3%, pulling its weekly gain back to 1.3%. The FBMKLCI’s top gainers were Genting Bhd (+0.8%), British American Tobacco (+1.3%) and MISC (+2.2%), while the top losers were Petronas Gas (-2.7%), Hong Leong Financial Group (-2.3%) and Genting Malaysia (-1.7%). In the broader market, losers outpaced gainers 516 to 424 with 369 counters unchanged. Turnover was 2.70b shares valued at RM2.18b. From a technical perspective and based on the daily chart, the FBMKLCI has formed another spinning top that indicates indecisiveness ahead. This is in line with our earlier expectation of normalisation of selling pressure before the index resumes its climb. Moving forward, we expect the index to retest the previous high of 1,785. Support and resistance levels are maintained as follows:

• Support: 1,740,1,729
• Resistance: 1,787, 1,800

US stocks were mixed after the close on Friday, as gains in the Utilities, Technology and Basic Materials sectors led shares higher while losses in the Industrials, Financials and Consumer Services sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average declined 0.11%, while the S&P 500 index fell 0.15%, and the NASDAQ Composite index climbed 0.09%. Falling stocks outnumbered advancing ones on the NYSE by 1,775 to 1,412 and 46 ended unchanged. On the Nasdaq Stock Exchange, 1,510 fell and 1004 advanced, while 112 ended unchanged.

Source: UOB Kay Hian Research - 15 May 2017