The FBMKLCI continued to rise 2.83pt to close at 1,761.99 yesterday. Meanwhile, Asian shares fluctuated near a 10-year high, as energy producers and industrial firms retreated before a flurry of earnings this week. The MSCI Asia Pacific Index was little changed at 159.58 as of 4:31pm in Hong Kong, a trading day after reaching its highest level since December 2007. The FBMKLCI’s top gainers were Astro Malaysia Holdings (+3.6%), DiGi.Com (+1.9%) and British American Tobacco (+1.6%), while the top losers were Westports Holdings (-1.1%), IHH Healthcare (-0.67%) and Axiata Group (-0.64%). In the broader market, losers outpaced gainers 475 to 299 with 420 counters unchanged. Turnover was 1.67b shares valued at RM1.68b. In line with our earlier expectation, the FBMKLCI bucked regional sentiments and rose higher yesterday, culminating in a negative bias which has been lurking over the index in the last few days. The bullish crossover in MACD and an uptick in RSI suggest buying pressure has started to gain traction, which could lead to further upside in the near term. Currently, the DMI is on the verge of making a golden cross to the positive signal. We expect the index will continue the upward movement to the immediate resistance of 1,787. Support and resistance levels are as follows:

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

US stocks closed mixed on Monday with gains in the technology, financials and healthcare sectors and losses in the telecoms, utilities and consumer goods sectors. At the close, the Dow Jones Industrial Average fell 0.3%, the S&P 500 index declined 0.1% and the NASDAQ Composite index added 0.4%. Falling stocks outnumbered advancing ones on the New York Stock Exchange by 1,761 to 1,330 and 149 ended unchanged. On the Nasdaq Stock Exchange, 1,330 rose and 1,141 declined, while 149 ended unchanged.

Source: UOB Kay Hian Research - 25 Jul 2017