The FBMKLCI closed lower 2.54pt at 1,771.04 last Friday. Meanwhile, stocks vacillated Friday before ending little changed and Treasuries gained with gold, as investors reached for safe haven assets after North Korea ratcheted up its threats against the US. The MSCI Asia Pacific Index declined 0.2%. The FBMKLCI’s top gainers were RHB Bank (+2.5%), Astro Malaysia Holdings (+1.1%) and Axiata Group (+0.99%), while the top losers were Westports Holdings (-2.8%), Petronas Gas (-1.9%) and Genting Malaysia (-1.6%). In the broader market, losers outpaced gainers 473 to 385 with 392 counters unchanged. Turnover was 3.25b shares valued at RM2.41b. Despite opening a tad higher at 1,796, the FBMKLCI was unable to move up further and traded in a tight range of 1,770-1,776 last Friday, suggesting investors remain cautious on the uncertain market. From a technical perspective, the index formed a series of lower highs and lower lows which indicates a short-term downtrend. But we believe the index would trade sideways in the near term and the 1,800 psychological level would be strong resistance. The support and resistance levels are as follows:

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

US stocks closed mostly unchanged on Friday amid escalating US-North Korea tensions. The telecoms, oil & gas and industrials sectors led shares higher while losses in the utilities, basic materials and consumer goods sectors led shares lower. At the close in NYSE, the DJIA declined 0.04%, while the S&P 500 index gained 0.06%, and the NASDAQ Composite index added 0.07%. Rising stocks outnumbered declining ones on the NYSE by 1,985 to 1,104, and 133 ended unchanged. On the Nasdaq Stock Exchange, 1,649 rose and 835 declined, while 143 ended unchanged.

Source: UOB Kay Hian Research - 25 Sept 2017