The FBMKLCI declined 1.35pt to close the week at 1,764.24 following persistent selling pressure due to a lack of domestic catalysts. Meanwhile, Asian shares rose on Wednesday as investors hoped for progress on major tax reform in the US, while the dollar hovered near one-month highs on growing expectations of a US interest rate increase in December. The MSCI Asia Pacific Index fell 0.3%. The FBMKLCI’s top gainers were DiGi.Com (+1.2%), PPB Group (+0.95%) and Telekom Malaysia (+0.95%), while the top losers were Genting Bhd (-1.8%), Westports Holdings (-1.0%) and CIMB Group Holdings (-0.63%). In the broader market, gainers outpaced losers 401 to 376 with 414 counters unchanged. Turnover was 2.21b shares valued at RM2.16b. From a technical viewpoint, nothing much changed in yesterday’s tight movement as we had expected the index to continue consolidating within our prescribed range of 1,760 to 1,790 while violation of either band would, in our view, lead to a follow-through. For now, investors remain cautious given the uncertain sentiments across the globe. Nevertheless, the FBMKLCI is now trading below both the 7-day and 21-day EMA lines with immediate support of 1,760 likely to be tested in the near term. Support and resistance levels are as follows:

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

US stocks rose on Wednesday as gains in financial shares were powered by growing expectations for a December interest rate hike and on hopes President Trump's administration may be making progress on a tax plan. Gains in the Technology and Consumer Services sectors also led shares higher. At the close in NYSE, the DJIA rose 0.25%, while the S&P 500 index added 0.41%, and the NASDAQ Composite index gained 1.15%. Rising stocks outnumbered declining ones on the NYSE by 1,750 to 1,344 and 124 ended unchanged; on the Nasdaq Stock Exchange, 1,937 rose and 621 declined, while 94 ended unchanged.

Source: UOB Kay Hian Research - 28 Sep 2017