The FBMKLCI continued to slide lower after sinking 3.55pt to close at 1,765.59 yesterday. Meanwhile, Asian shares withered on Tuesday and the yen firmed against the backdrop of rising tensions on the Korean Peninsula, and as investors awaited fresh signals about the US monetary policy outlook. The MSCI Asia Pacific Index declined 0.3% to 161.65. The FBMKLCI’s top gainers were Westports Holdings (+3.5%), Petronas Dagangan (+0.82%) and AMMB Holdings (+0.69%), while the top losers were Genting Malaysia (-2.0%), Petronas Gas (-1.8%) and DiGi.Com (-1.2%). In the broader market, losers outpaced gainers 603 to 276 with 366 counters unchanged. Turnover was 3.70b shares valued at RM2.37b. From a technical perspective, the FBMKLCI continued to slip lower yesterday and penetrated the previous immediate support of 1,766 to close at 1,765.59. Given the negative readings on the RSI and MACD, the index may test our immediate support if selling pressure persists. This is supported by a bearish crossover in the DMI. Moving forward, we expect the index to resume its upward movement once selling pressure normalises. Support and resistance levels are revised as follows:

• Support: 1,760,1,752
• Resistance: 1,793, 1,800

US stock-markets relinquished earlier gains to close little changed on Tuesday, with the Dow industrials extending a losing streak to a fourth session. The S&P 500 closed a fraction of a point higher at 2,496.84, with eight of the 11 main sectors ending lower. Telecoms and materials led the losses, down 0.9% and 0.4% respectively, while technology shares rebounded slightly, ending 0.4% higher. The DJIA slipped 11.77pt, or less than 0.1%, to 22,284.32. Apple gained 1.7%, halting a four-session skid. The techheavy NASDAQ advanced 9.57pt, or 0.1%, to 6,380.16, recouping a fraction of losses from the previous session.

Source: UOB Kay Hian Research - 27 Sept 2017