The FBMKLCI fell 7.41pt to close at 1,764.89 yesterday. Meanwhile, stocks in Asia were mixed amid low trading volume, and the yen held to a narrow range as investors weighed the latest comments from Federal Reserve officials on interest rates and the economy. The MSCI Asia Pacific Index lost 0.1%, with almost an equal number of shares rising and falling. The FBMKLCI’s top gainers were Genting Malaysia (+1.5%), Axiata Group (+1.2%) and YTL Corporation (+0.66%), while the top losers were Genting Bhd (-2.19%), Petronas Chemicals Group (-2.0%) and Petronas Gas (-1.9%). In the broader market, losers outpaced gainers 688 to 224 with 345 counters unchanged. Turnover was 2.32b shares valued at RM1.87b. Given the marginal change of the FBMKLCI, we maintain our outlook for the time being. From a technical perspective, the near-term outlook suggests the FBMKLCI has the potential to move up higher while the medium-term outlook remains neutral with movement expected to range from 1,755 to 1,785. However, given the weaker external market, particularly within the region, the index may succumb to selling pressure if the immediate support of 1,755 is breached. Nevertheless, the index could continue to move sideways for now. Support and resistance levels are as follows:

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

The US markets were closed on 29 May for Memorial Day.

Source: UOB Kay Hian Research - 30 May 2017