The FBMKLCI closed marginally higher at 1,766.00 (+2.66pt, +0.15%) yesterday, backed by gains in selected blue chips. Meanwhile, Asian stocks steadied on Wednesday and the dollar held firm as investors awaited the Federal Reserve's policy decision later in the day for more clues on its tightening plans. The MSCI Asia Pacific Index was little changed at 159.09 as of 4:33pm in Hong Kong, with advancing stocks maintaining an edge over decliners. The FBMKLCI’s top gainers were Hong Leong Financial Group (+0.95%), Genting Bhd (+0.83%) and Westports Holdings (+0.81%), while the top losers were British American Tobacco (-1.3%), MISC (-0.67%) and Hap Seng Consolidated (-0.55%). In the broader market, losers outpaced gainers 431 to 375 with 395 counters unchanged. Turnover was 1.30b shares valued at RM1.55b. The FBMKLCI has pared down earlier losses as it managed to close in green territory yesterday. Given the positive follow-through from the successful closing above the BBI line, the index may rise higher. RSI is approaching the 50ppt threshold and crossing above it may send the index higher. Following the rise of optimism in the domestic market, short-term upside looks set to retest the 1,770 level. Support and resistance levels are still maintained as follows:

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

US stocks were higher after the close on Wednesday, led by the telecoms, utilities and oil & gas sectors. The Dow Jones Industrial Average rose 0.4% to hit a new all-time high, the S&P 500 index climbed 0.03% and the NASDAQ Composite index added 0.2%. Rising stocks outnumbered declining ones on the New York Stock Exchange by 1,625 to 1,479 while 138 ended unchanged. On the Nasdaq Stock Exchange, 1,320 stocks fell, 1,158 advanced while 138 ended unchanged.

Source: UOB Kay Hian Research - 27 Jul 2017