The FBMKLCI closed marginally lower last Friday, sliding 4.53pt to settle at 1,742.28 amid the recent selling pressure and bargain-hunting across the board. Meanwhile, Asian shares mostly fell on Friday with sentiment hit by an overnight drop in the US as expected tax cuts are now uncertain on timing and scope. The FBMKLCI’s top gainers were Astro Malaysia Holdings (+1.4%), Petronas Dagangan (+0.67%) and IOI Corporation (+0.75%), while the top losers were MISC (-2.0%), Genting Malaysia (-1.9%) and Westports Holdings (-1.9%). In the broader market, losers outpaced gainers 479 to 371 with 400 counters unchanged. Turnover was 3.10b shares valued at RM2.14b. The FBMKLCI registered a “spinning top” pattern that hints at the indecisive nature of last Friday’s movement. The index failed to recover from an earlier gain to close above both 7- day and 21-day EMA lines, thus forcing the short-term outlook to remain on a downside bias. The RSI line is still trading above 50pt despite a flat reading last Friday, while weaker signals from DMI suggest a consolidation ahead. Support and resistance levels are as follows:

• Support: 1,729,1,713
• Resistance: 1,766, 1,778

US stocks were mixed after the close on Friday, as gains in the consumer goods, consumer services and telecoms sectors led shares higher while losses in the oil & gas, healthcare and utilities sectors led shares lower. At the close in NYSE, the DJIA fell 0.17%, while the S&P 500 index declined 0.09%, and the NASDAQ Composite index added 0.01%. Falling stocks outnumbered advancing ones on the NYSE by 1,750 to 1,325 and 136 ended unchanged; on the Nasdaq Stock Exchange, 1,319 rose and 1,206 declined, while 127 ended unchanged.

Source: UOB Kay Hian Research - 13 Nov 2017