The FBMKLCI continued to slide for the third consecutive day after dipping 3.08pt to close at 1,773.58 yesterday. Meanwhile, stocks in Asia fluctuated and the dollar traded above its recent lows with a highly anticipated Federal Reserve policy decision pending, and as investors girded for another round of geopolitical tensions after US President Donald Trump threatened to annihilate North Korea. The MSCI Asia Pacific Index was up 0.2%. The FBMKLCI’s top gainers were Westports Holdings (+1.8%), AMMB Holdings (+1.6%) and Genting Malaysia (+1.4%), while the top losers were CIMB Group Holdings (-2.3%), Petronas Chemicals Group (-1.0%) and Maxis (-0.7%). In the broader market, losers outpaced gainers 476 to 377 with 384 counters unchanged. Turnover was 3.15b shares valued at RM2.38b. The FBMKLCI closed lower yesterday in line with the weaker performance across the region. The index continued to move within our expected range of 1,760-1,790 and now looks to be testing the immediate support of 1,766 in the near term. The presence of a bearish crossover between the 7-day and 21-day EMA lines also signals a potential correction ahead. This is supported by a downtick in the RSI, which indicates an increase in selling pressure. However, we remain neutral on the FBMKLCI, given the current consolidation, unless a negative closing below the immediate support changes the shortterm outlook to bearish. Support and resistance levels are as follows:

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

US stocks were mixed after the close on Wednesday, as gains in the Oil & Gas, Industrials and Financials sectors led shares higher while losses in the Utilities, Technology and Consumer Goods sectors led shares lower. At the close in NYSE, the DJIA gained 0.19% to hit a new all-time high, while the S&P 500 index gained 0.06%, and the NASDAQ Composite index fell 0.08%. Rising stocks outnumbered declining ones on the NYSE by 1,693 to 1,378 and 156 ended unchanged. On the Nasdaq Stock Exchange, 1,450 rose and 1,056 declined, while 136 ended unchanged.

Source: UOB Kay Hian Research - 21 Sept 2017