The FBMKLCI closed marginally higher at 1,774.53 (+2.63pt, +0.2%) last Friday, backed by gains in selected blue chips. Meanwhile, Asian stocks inched up on Friday after a technology-led drop on Wall Street, with gains kept in check by investors' reluctance to stake out fresh positions ahead of US jobs data later in the day. The FBMKLCI’s top gainers were Hong Leong Bank (+2.2%), YTL Corporation (+1.4%) and Astro Malaysia Holdings (+1.2%), while the top losers were Petronas Dagangan (-0.9%), Genting Malaysia (-0.8%) and British American Tobacco (-0.5%). In the broader market, losers outpaced gainers 397to 361 with 467 counters unchanged. Turnover was 1.42b shares valued at RM1.47b. From a technical perspective, the FBMKLCI continued to form higher highs and higher lows which indicate an uptrend toward the immediate resistance of 1,787. Strong gains on the back of higher trading volumes signify a genuine breakout, potentially prolonging the upward movement. However, the remarkable gains in the last few days may attract conservative investors to lock in gains. Nevertheless, the long-term outlook remains bullish. Support and resistance levels are maintained as follows:

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

US stocks closed higher on Friday, with the Dow ending at a record for an eighth straight session following a read on the labor market that came in above expectations, a sign that current valuations may be supported by current economic activity. Gains were spurred by the July payrolls report, which showed the US created 209,000 new jobs in July, easily beating Wall Street forecasts for 175,000 jobs. Separately, the unemployment rate moved to 4.3% from 4.4%, retouching a 16-year low. The DJIA rose 0.3% to end at 22,092.81, an all-time high. The S&P 500 index gained 0.19% to 2,476.83 and the Nasdaq Composite added 0.18% to 6,351.56.

Source: UOB Kay Hian Research - 7 Aug 2017