The FBMKLCI declined 3.88pt to close at 1,733.61 yesterday following mild selling pressure amid profit taking in index-linked counters. Meanwhile, Asian stocks put in a subdued performance on Tuesday as Chinese economic data disappointed and investors pondered whether a marked flattening in the US yield curve might be a harbinger of a future slowdown there. The FBMKLCI’s top gainers were Malayan Banking (+2.0%), IHH Healthcare (+1.2%) and IJM Corporation (+1.0%), while the top losers were Genting Bhd (-2.9%), Petronas Gas (-2.6%) and Westports Holdings (-2.4%). In the broader market, losers outpaced gainers 588 to 300 with 407 counters unchanged. Turnover was 2.98b shares valued at RM2.60b. From a technical perspective, the FBMKLCI did not make any major moves that may shift the current consolidation toward further downside, as the index remains supported above our immediate support of 1,729. As such, a violation of the immediate support could spell trouble for the index going forward. Nevertheless, we remain optimistic as the FBMKLCI will still be in bullish mode over the long term. We expect the index to resume its uptrend once the selling pressure has normalised. Support and resistance levels are as follows:

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

US stock benchmarks finished lower, but off their intraday lows, on Tuesday, with Wall Street slumping in the face of uncertainty around efforts to overhaul tax policy and a downturn in crude-oil futures. The DJIA fell 30.23 pts, or 0.13%, to end at 23,409.47, the S&P 500 lost 5.97 pts, or 0.23%, to 2,578.87 and the Nasdaq Composite dropped 19.72 pts, or 0.29%, to 6,737.87. Declining issues outnumbered advancing ones on the NYSE by a 1.47-to-1 ratio; on Nasdaq, a 1.23-to-1 ratio favoured decliners.

Source: UOB Kay Hian Research - 15 Nov 2017