The FBMKLCI closed 0.16% higher (+2.85pt) at 1,772.48 yesterday. Meanwhile, Asian stocks fell on Wednesday after a slide on Wall Street overnight. Meanwhile, the dollar was on the defensive with tensions in the Korean peninsula showing few signs of abating. The MSCI Asia Pacific Index fell 0.2% to 160.21.The FBMKLCI’s top gainers were Genting Malaysia (+2.4%), Hong Leong Financial Group (+1.3%) and Petronas Chemicals Group (+1.2%), while the top losers were MISC (-1.9%), YTL Corporation (-1.4%) and Axiata Group (-1.2%). In the broader market, losers outpaced gainers 419 to 417 with 372 counters unchanged. Turnover was 2.21b shares valued at RM1.81b. Given the indecisive nature of the “spinning top” pattern registered in yesterday’s movement and a flattish signal in the RSI, we remain adamant that the current consolidation is part of the natural normalisation process in each market. Given a lack of fresh catalysts, we expect the FBMKLCI to move within the market range of 1,760 to 1,780 in the near term. However, the index continues to trade above the trendline, thus we opine the upward movement should resume once selling pressure eases. We maintain our support and resistance levels as follows:

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

US stocks rose on Wednesday as investors cheered news that President Donald Trump agreed to raise the debt ceiling and extend government funding through to 15 Dec 17, avoiding a government shutdown. Gains in the oil & gas, consumer services and healthcare sectors led shares higher. At the close, the DJIA, the S&P 500 index and the NASDAQ Composite index gained 0.3% each. Rising stocks outnumbered declining ones on the New York Stock Exchange by 1,898 to 1,189, and 149 ended unchanged. On the Nasdaq Stock Exchange, 1,336 rose and 1,139 declined, while 160 ended unchanged.

Source: UOB Kay Hian Research - 7 Sept 2017