The FBMKLCI rose 5.1pt to close at 1,765.13 yesterday. Meanwhile, global stocks advanced following the latest set of corporate results, with European shares grinding higher and Asian peers jumping on both earnings and promising economic data. The MSCI Asia-Pacific Index rose to the highest since 2007 as equity indexes from Tokyo to Sydney advanced. The FBMKLCI’s top gainers were Genting Malaysia (+1.7%), Public Bank (+1.6%) and Malayan Banking (+1.2%), while the top losers were IJM Corporation (-1.2%), Kuala Lumpur Kepong (-0.81%) and Sime Darby (-0.74%). In the broader market, losers outpaced gainers 503 to 271 with 454 counters unchanged. Turnover was 1.82b shares valued at RM2.23b. The FBMKLCI has recovered from the earlier pullback and closed higher at 1,765.13 yesterday. From a technical perspective, the RSI line has risen above 50pt, which signals weaker selling pressure and thus may push the index higher in the near term. The benchmark index has closed above the BBI line, signalling upward continuation from here onwards. Overall, we expect the index will move in a sideways mode ranging from 1,760- 1,770. Support and resistance levels are still maintained as follows:

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

The DJIA racked up a fifth straight record high on Tuesday and neared the 22,000 mark, powered by Goldman Sachs, JPMorgan Chase and other banks. Apple rose 0.89% as Wall Street awaited the largest publicly listed company's quarterly report after the bell, with the iPhone maker expected by analysts to post a 6% rise in revenue. The S&P 500 information technology index (SPLRCT) is up 22% ytd, leading other sectors. The DJIA closed higher at 21,963. The S&P 500 closed 0.24% higher while the Nasdaq Composite closed at 6362.94, up 0.23%. Economic data showed US consumer spending barely rose in June as income failed to increase for the first time in seven months.

Source: UOB Kay Hian Research - 2 Aug 2017