The FBMKLCI rose 4.96pt (+0.3%) to close at 1,786.33 last Friday. Meanwhile, Asian shares dipped slightly on Friday after North Korea fired another missile over Japan on Friday, demonstrating Pyongyang's defiance against intensifying UN sanctions.The FBMKLCI’s top gainers were Astro Malaysia Holdings (+3.0%), Westports Holdings (+2.6%) and IOI Corporation (+2.6%), while the top losers were YTL Corporation (-1.4%), Petronas Chemicals Group (-1.0%) and Maxis (-0.5%). In the broader market, losers outpaced gainers 509 to 369 with 350 counters unchanged. Turnover was 2.15b shares valued at RM2.69b. Based on a technical view, the FBMKLCI closed in positive mode last Friday as the index reversed an earlier pullback to establish a new up-leg. As the long-term uptrend remains intact with the index still trading above both the 7-day and 21-day EMA lines, we expect further upside from here, with the 1,790 level being the immediate target. A positive follow-through and a breach above 1,790 may signify an upward trend to the psychological 1,800 level. Support and resistance levels are maintained as follows:

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

Wall Street reached record highs on Friday, with the S&P 500 surpassing 2,500 points as telecommunications shares rose and technology bounced back after two days of declines. At the close in NYSE, the DJIA gained 0.29% to hit a new all-time high, while the S&P 500 index added 0.18%, and the NASDAQ Composite index gained 0.30%. Rising stocks outnumbered declining ones on the NYSE by 1,911 to 1,168 and 147 ended unchanged. On the Nasdaq Stock Exchange, 1,458 rose and 1,063 declined, while 116 ended unchanged.

Source: UOB Kay Hian Research - 18 Sept 2017