The FBMKLCI declined 7.78pt to close at 1,767.17 yesterday as the index pared down earlier gains due to heavy selling in selected index-linked counters. Meanwhile, Asian stocks dropped from the highest level in two years as material producers halted gains as the price of crude oil slipped. The MSCI Asia Pacific Index slipped 0.2% percent to 151.93. The FBMKLCI’s top gainers were MISC (+1.3%), CIMB Group Holdings (+0.67%) and Public Bank (+0.19%), while the top losers were Petronas Gas (-3.1%), AMMB Holdings (-2.8%) and RHB Bank (-2.2%). In the broader market, losers outpaced gainers 636 to 292 with 367 counters unchanged. Turnover was 2.91b shares valued at RM2.80b. The FBMKLCI closed lower yesterday in line with weaker performances across the region. The index continued to move within our expected range of 1,755 to 1,780 and now looks to be testing the immediate support of 1,755 in the near term. This is supported by a downtick in RSI which indicates an increase in selling pressure. For now, the FBMKLCI will stay above the trendline but in our view, a further slip may change the overall bullish outlook to a much more neutral ground. Moving forward, a negative closing below the immediate support should place more downward pressure on the index. Support and resistance levels are as follows:

• Support: 1,755,1,729
• Resistance: 1,787, 1,800

US stock-index benchmarks closed higher Tuesday, marking a fourth straight session in the green following the White House’s release of its 2018 budget proposal. The moves come amid mixed economic data and an updraft in shares of financial firms. At the close in NYSE, the DJIA gained 0.21%, while the S&P 500 index added 0.18%, and the NASDAQ Composite index climbed 0.08%. Rising stocks outnumbered declining ones on the NYSE by 1,865 to 1,347 and 47 ended unchanged. On the Nasdaq SE, 1,288 rose and 1,187 declined, while 143 ended unchanged.

Source: UOB Kay Hian Research - 24 May 2017