The FBMKLCI surrendered 3.79pt to close at 1,786.07 yesterday as selling across the board pared down earlier gains. Meanwhile, equities in Asia extended gains seen around the world and Treasuries held on to declines on bets that economic growth is strong enough to withstand heightened geopolitical tensions. The MSCI Asia Pacific Index added 0.1%. The FBMKLCI’s top gainers were IOI Corporation (+2.0%), Telekom Malaysia (+1.3%) and AMMB Holdings (+1.2%), while the top losers were Genting Malaysia (-2.5%), CIMB Group Holdings (-1.2%) and Astro Malaysia Holdings (-1.1%). In the broader market, losers outpaced gainers 480 to 385 with 387 counters unchanged. Turnover was 2.70b shares valued at RM1.85b. Despite opening a tad higher at 1,789, the FBMKLCI was unable to move up further and traded in a tight range of 1,785-1,793 yesterday. This suggests investors remain cautious on the uncertain market. We believe the index will be traded sideways in the near term and the 1,800 psychological level would be a strong resistance. The support and resistance levels are as follows:

• Support: 1,766,1,752
• Resistance: 1,793, 1,800

US stocks raced to a record close for the second day in a row, shrugging off weak wholesale inflation data while renewed hopes of a tax reform lifted sentiment. At the close in NYSE, the DJIA gained 0.18% to hit a new all time high, while the S&P 500 index gained 0.08%, and the NASDAQ Composite index climbed 0.09%. Rising stocks outnumbered declining ones on the NYSE by 1,601 to 1,454 and 166 ended unchanged; on the Nasdaq Stock Exchange, 1,394 rose and 1,076 declined, while 168 ended unchanged.

Source: UOB Kay Hian Research - 14 Sept 2017