The FBMKLCI closed a tad lower (-2.67ppt, -0.2%) at 1,783.66 yesterday despite some bargain hunting. Meanwhile, stocks advanced in Asia following a record-breaking Wall Street session, while the yen declined amid optimism that the US favours a peaceful resolution to North Korea’s nuclear threats. The MSCI Asia Pacific Index advanced 0.6%. The FBMKLCI’s top gainers were Malayan Banking (+1.0%), YTL Corporation (+0.7%) and IOI Corporation (+0.4%), while the top losers were Genting Malaysia (-2.1%), IHH Healthcare (-1.8%) and Petronas Gas (-1.3%). In the broader market, losers outpaced gainers 457 to 406 with 366 counters unchanged. Turnover was 1.99b shares valued at RM1.61b. Despite yesterday’s negative closing, our outlook for the index remains neutral in the short term as we expect further consolidation ahead. We expect the FBMKLCI to hover around 1,760-1,790 for now and a breach of either limit would spark a follow-through. We maintain our long-term bullish outlook as the index is still climbing along the long-term trendline. Support and resistance levels are as follows:

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

US stocks were higher after the close on Monday, as gains in the Industrials, Basic Materials and Financials sectors led shares higher. At the close in NYSE, the DJIA added 0.28% to hit a new all-time high, while the S&P 500 index climbed 0.15%, and the NASDAQ Composite index gained 0.10%. Raising stocks outnumbered declining ones on the NYSE by 1,751 to 1,334 and 146 ended unchanged. On the Nasdaq Stock Exchange, 1,513 rose and 998 declined, while 134 ended unchanged.

Source: UOB Kay Hian Research - 19 Sept 2017