The FBMKLCI added 1.29pt to close at 1,771.90 yesterday as another round of bargainhunting in index-linked counters rolled back earlier losses, and some positive improvements were seen in the broader market Meanwhile, Asian stocks fell after surging to the highest level in almost 10 years, with investors assessing the strength of company earnings before American labor-market data provides the latest clues on the health of global growth. The FBMKLCI’s top gainers were Axiata Group (+2.3%), Petronas Dagangan (+1.2%) and Genting Malaysia (+0.66%), while the top losers were MISC (-3.0%), Hong Leong Financial Group (-1.1%) and Petronas Gas (-0.75%). In the broader market, losers outpaced gainers 449 to 346 with 416 counters unchanged. Turnover was 1.75b shares valued at RM1.75b. 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 past few weeks. The bullish crossover in DMI and MACD suggests buying pressure has started to gain traction, which could lead to further upside in the near term. Although the negative bias in the short term has fully normalised, we maintain our long-term bullish bias. Support and resistance levels are as follows:

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

The rally in the Dow showed no signs of ending, closing at a record high for the seventh session in a row on Thursday, as traders welcomed the last big wave of corporate earnings this week while a report that the Russia investigation is intensifying capped gains. Nonfarm pay-roll numbers, which are due on Friday, are forecasted to show a 180,000 increase, down from June’s figure of 187,000. The DJIA closed higher at 22,026. The S&P 500 closed 0.22% lower while the Nasdaq Composite closed at 6340.34, up 0.35%.

Source: UOB Kay Hian Research - 4 Aug 2017