The FBMKLCI added 3.38pt to close marginally higher at 1,777.91 yesterday as persistent buying interest slightly won over profit taking amid positive overflows from the overnight US markets. Meanwhile, Asian stocks advanced on Monday, taking the cue from Wall Street, while the dollar moderated but retained most of its gains after a stronger-than-expected July jobs report. The MSCI Asia Pacific Index advanced 0.4% to 161.12 as of 4:04pm in Hong Kong as materials and technology stocks led gains. The FBMKLCI’s top gainers were MISC (+1.4%), AMMB Holdings (+1.2%) and IOI Corporation (+1.1%), while the top losers were Hong Leong Bank (-1.8%), IHH Healthcare (-1.2%) and Astro Malaysia Holdings (-0.8%). In the broader market, losers outpaced gainers 516 to 363 with 356 counters unchanged. Turnover was 1.95b shares valued at RM1.68b. A positive follow-through from last Friday could spell a further climb in the near term, given the strong buying interest yesterday. With the MACD histogram approaching the zero level while both the MACD and signal lines are on a bullish crossover, we reiterate that the positive sentiment is in line with the rising trendline. This is supported by positive signal in the DMI indicators. We expect the index to retest the immediate resistance of 1,787 in the near term. Support and resistance levels are as follows:

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

The Dow edged up to its ninth record closing high in a row while the S&P ended slightly higher on Monday, with consumer and technology sector gains offsetting losses in energy. The DJIA rose 25.61pt, or 0.12%, to close at 22,118.42. The S&P 500 climbed 4.08pt, or 0.16%, to 2,480.91 and the Nasdaq Composite added 32.21pt, or 0.51%, to end at 6,383.77. Declining issues outnumbered advancing ones on the NYSE by a 1.08-to-1 ratio. On the Nasdaq, a 1.07-to-1 ratio favoured advancers.

Source: UOB Kay Hian Research - 8 Aug 2017