The FBMKLCI added 12.02pt to close at 1,773.16 last Wednesday following late buying interest in blue chip counters after treading mostly in negative territory throughout the day. Meanwhile, Asian stocks advanced after President Donald Trump’s measured response to North Korean missile launches and comments from Kim Jong Un suggested geopolitical tensions will ease off. The MSCI Asia Pacific Index rose 0.1%.The FBMKLCI’s top gainers were CIMB Group Holdings (+5.7%), MISC (+2.6%) and YTL Corporation (+2.1%), while the top losers were Digi.Com (-0.82%), AMMB Holdings (-0.70%) and Petronas Chemicals Group (-0.42%). In the broader market, gainers outpaced losers 480 to 375 with 351 counters unchanged. Turnover was 1.83b shares valued at RM2.21b. Despite opening relatively lower, the FBMKLCI managed to claw back its deficit to rise slightly higher after late buying interest in index-linked stocks. However, the broader market was not on the same page, given the overall decline due to extended profit-taking. The RSI line is still treading below 50pt despite a flat reading last Wednesday while weaker signals from DMI suggest a consolidation ahead. Nevertheless, from a technical perspective, persistent buying interest in blue chips should prolong the long-term upward trend. Support and resistance levels are as follows:

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

US markets were closed as the US was celebrating Labour Day.

Source: UOB Kay Hian Research - 5 Sept 2017