The FBMKLCI closed marginally lower last Friday, sliding 1.66pt to settle at 1,772.30 amid the recent selling pressure and bargain-hunting across the board. Meanwhile, a slump in crude weighed on energy shares as most Asian equity markets headed for a lower finish to the week. The MSCI Asia Pacific Index declined 0.1% to 152.69. The FBMKLCI’s top gainers were Telekom Malaysia (+1.6%), KLCC Property Holdings (+0.90%) and Axiata Group (+0.80%), while the top losers were Genting Malaysia (-2.9%), AMMB Holdings (-1.9%) and IHH Healthcare (-1.6%). In the broader market, losers outpaced gainers 770 to 208 with 344 counters unchanged. Turnover was 2.86b shares valued at RM2.61b. The FBMKLCI registered a “spinning top” pattern that hinted at the indecisive nature of last Friday’s movement. The index failed to recover from an earlier gain to close above both 7-day and 21-day ESMA lines, thus forcing the short-term outlook to remain on a downside bias. The RSI line is still trading above 50pt despite a flat reading last Friday, while weaker signals from MACD suggest a consolidation ahead. Support and resistance levels are as follows:

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

US stocks were mixed after the close on Friday, as gains in the Consumer Services, Consumer Goods and Basic Materials sectors led shares higher while losses in the Financials, Healthcare and Telecoms sectors led shares lower. At the close in NYSE, the DJIA lost 0.01%, while the S&P 500 index gained 0.03%, and the NASDAQ Composite index climbed 0.08%. Rising stocks outnumbered declining ones on the NYSE by 1675 to 1527 and 48 ended unchanged. On the Nasdaq SE, 1,318 fell and 1,177 advanced, while 139 ended unchanged.

Source: UOB Kay Hian Research - 29 May 2017