The FBMKLCI slid 1.90pt and closed marginally lower yesterday after paring down earlier losses to settle at 1,769.14. Meanwhile, the euro slipped on Monday after German Chancellor Angela Merkel won a fourth term but faced a fractured parliament as support for the far-right surged, while Asian shares pulled back, weighed by concerns about China's economy. The MSCI Asia Pacific Index declined 0.3%. The FBMKLCI’s top gainers were Petronas Gas (+2.3%), Astro Malaysia Holdings (+2.2%) and KLCC Property Holdings (+0.90%), while the top losers were AMMB Holdings (-2.9%), RHB Bank (-2.3%) and Genting Malaysia (-1.3%). In the broader market, losers outpaced gainers 626 to 259 with 349 counters unchanged. Turnover was 2.46b shares valued at RM2.36b. The FBMKLCI recorded another negative closing yesterday following a weaker regional performance. The RSI line has crossed the 50pt threshold which points to growing selling pressure. This downward movement is supported by a bearish crossover in the MACD and DMI. Despite the negative connotation, we maintain our long-term bullish bias amid a lack of catalysts which has eroded investor interest in the short term. The consolidation is expected to continue within 1,760-1,790. Support and resistance levels are as follows:

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

US stocks were lower after the close on Monday as losses in the technology, healthcare and industrials sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average declined 0.2%, the S&P 500 index fell 0.2%, and the NASDAQ Composite index fell 0.9%. Rising stocks outnumbered declining ones on the NYSE by 1,699 to 1,370, and 151 ended unchanged. On the Nasdaq Stock Exchange, 1,378 fell and 1,126 advanced, while 144 ended unchanged.

Source: UOB Kay Hian Research - 26 Sept 2017