The FBMKLCI rose 3.74pt to close at 1,781.65 yesterday. Meanwhile, Asian shares went flat on Tuesday as disappointing Chinese trade data clouded the otherwise upbeat outlook on global growth, leaving currencies and commodities becalmed in summer doldrums. The MSCI Asia Pacific Index rose 0.1%. The FBMKLCI’s top gainers were YTL Corporation (+1.4%), CIMB Group Holdings (+1.2%) and Malayan Banking (+1.0%), while the top losers were AMMB Holdings (-2.2%), Genting Malaysia (-0.99%) and Westports Holdings (-0.82%). In the broader market, losers outpaced gainers 602 to 269 with 390 counters unchanged. Turnover was 2.09b shares valued at RM2.26b. The FBMKLCI has again recovered on late buying interest over the last few consecutive days, forming a series of pinbars towards the immediate resistance of 1,787. The recovery at the support level can be perceived as hidden buying interest as selling pressure was well absorbed. However, the RSI reading remained flat, suggesting the current consolidation is here to stay. Nevertheless, we expect a gradual recovery over the medium term and violation of the immediate resistance of 1,787 should propel the index higher. Support and resistance levels are as follows:

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

The US stock market’s pattern of bouncing back from incendiary news out of Washington lapsed Tuesday as threats against North Korea sent the S&P 500 down through the close. The Dow Jones Industrial Average fell 32.48 points, while the Nasdaq Composite Index lost 0.2%. The S&P 500 closed down 0.2% at 2,474.94 after losing as much as 0.4% just after 3:30pm in New York. The VIX, an options-derived gauge of hedging costs tied to stock volatility, jumped 11.3% to 11.05 as of 4:04pm, poised for its highest close since July 10.

Source: UOB Kay Hian Research - 9 Aug 2017