The FBMKLCI fell 4.45pt to close at 1,784.44 yesterday following profit-taking activities in blue chips after the recent rebound. Meanwhile, Asian stocks rose following Monday’s tumble in major technology stocks as investors turned their focus to central bank decisions due later this week. The MSCI Asia Pacific Index added 0.3% to 154.94. The FBMKLCI’s top gainers were Astro Malaysia Holdings (+1.2%), KLCC Property Holdings (+1.0%) and Hap Seng Consolidated (+0.66%), while the top losers were MISC (-1.8%), IHH Healthcare (-1.3%) and Genting Malaysia (-1.2%). In the broader market, losers outpaced gainers 557 to 349 with 375 counters unchanged. Turnover was 2.05b shares valued at RM2.57b. The FBMKLCI has entered a consolidation mode after its heavy gain last week. While the index would likely to trade sideways in the near-term, overall long-term uptrend remains intact. However, a breakout below 1,760 would see the index to retest its next support level of 1,742. The support and resistance levels are as follows :

• Support: 1,760,1,742
• Resistance: 1,800, 1,825

US stocks closed higher on Tuesday as technology stocks recovered from a two-day slump and financials gained momentum ahead of a widely expected interest rate hike from the Federal Reserve. The DJIA closed in record territory at 21328.41. The S&P 500 gained 0.5% while the Nasdaq Composite closed at 6220.37, up 0.7%. Rising stocks outnumbered declining ones on the NYSE by 2,226 to 1,002, and 21 ended unchanged; on the Nasdaq Stock Exchange, 1,601 rose and 927 declined, while 111 ended unchanged.

Source: UOB Kay Hian Research - 14 Jun 2017