The FBMKLCI plunged 10.6pt to close at 1,759.93 last Friday. Meanwhile, a global sell-off in bonds and equities spreads to Asia, with investors on edge as central banks step up talk of tighter policy conditions. The MSCI Asia Pacific Index declined 0.6%, for its biggest weekly loss since early-March. The FBMKLCI’s top gainers were AMMB Holdings (+0.4%), IJM Corporation (+0.3%) and Wesports Holdings (+1.4%), while the top losers were Hong Leong Financial Group (-3.2%), IOI Corporation (-3.0%) and Axiata Group (-1.9%). In the broader market, losers outpaced gainers 592 to 195 with 438 counters unchanged. Turnover was 1.31b shares valued at RM1.55b. From a technical perspective, the weekly candlestick FBMKLCI chart is showing some weakness after last week’s negative closing. Last Friday, the index formed a bearish Marubozu bar and penetrated the previous immediate support level of 1,760 to close at 1,759 A failure to sustain at above both the 7-day and 21-day EMA lines suggests easing buying interest as investors trim their positions. The visibility of the pin bar in the twoweek candlestick indicates strong selling within the psychological resistance of 1,800 as a breach above the level should extend the upward move. Support and resistance levels are revised as follows:

• Support: 1,752,1,742
• Resistance: 1,787, 1,800

Wall Street stocks climbed on Friday, with the S&P 500 index on track for its best gain in six sessions on the heels of a strong US payrolls report, led by gains in technology stocks. At the close in NYSE, the DJIA rose 0.44%, while the S&P 500 index gained 0.64%, and the NASDAQ Composite index climbed 1.04%. Rising stocks outnumbered declining ones on the New York Stock Exchange by 2,100 to 990 and 146 ended unchanged; on the Nasdaq Stock Exchange, 1,803 rose and 696 declined, while 130 ended unchanged.

Source: UOB Kay Hian Research - 10 Jul 2017