The FBMKLCI lost 5.38pt (-0.31%) to close at 1,748.99 yesterday. The FBMKLCI’s the top losers were Petronas Dagangan (-2.9%), Kuala Lumpur Kepong (-2.6%) and Telekom Malaysia (-2.4%) while top gainers were Genting Berhad (+1.9%), Digi.Com (+1.2%) and Astro Malaysia Holdings (+0.7%). In the broader market, losers outpaced gainers 468 to 395 with 415 counters unchanged. Turnover was 2.89b shares valued at RM2.28b.

The FBMKLCI continued its pullback as the index slid on Tuesday. The RSI line is still treading below 50pt while weaker signals from DMI and MACD suggest a consolidation ahead. Weaker regional sentiments as well as an absence of domestic catalysts may drag the index lower in the near term. If current sentiments persist, the FBMKLCI could test the immediate support at 1,746 soon. Support and resistance levels are as follows:

• Support: 1,746,1,741
• Resistance: 1,776, 1,790

US stocks closed higher on Tuesday as the DJIA punched firmly higher to a historic close of above 23,000. At the close in NYSE, the DJIA rose 0.7%, the S&P 500 index gained 0.1% and the NASDAQ Composite index added 0.01%. Advancing stocks outnumbered rising ones on the NYSE by 1,527 to 1,422, and 126 ended unchanged. On the Nasdaq Stock Exchange, 1,247 fell and 1,649 advanced, while 150 ended unchanged.

Source: UOB Kay Hian Research - 19 Oct 2017