The FBMKLCI continued to slide by 4.88pt and closed at 1,718.11 yesterday. Meanwhile, Asian shares shrugged off a lacklustre start and pushed higher, while the dollar edged up as investors priced in more US rate hikes after upbeat economic data.The FBMKLCI’s top gainers were Petronas Gas (+1.8%), Petronas Dagangan (+1.2%) and Petronas Chemicals Group (+0.7%), while the top losers were Axiata Group (-2.6%), YTL Corporation (-1.6%) and Genting Malaysia (-1.4%). In the broader market, losers outpaced gainers 693 to 253 with 362 counters unchanged. Turnover was 2.44b shares valued at RM2.48b. The FBMKLCI extended losses following uncertainties throughout the region. Given the downtick in the RSI which signals growing selling momentum, we expect the index to test the immediate support at 1,713 in the near term. A rebound from this level could reverse the current weakness. We recommended investors tread the market cautiously and use a tight stop-loss to protect their capital. Support and resistance levels are as follows:

• Support: 1,713,1,700
• Resistance: 1,750, 1,766

The Wall Street's main indexes rose sharply on Thursday, boosted by earnings-related gains in Wal-Mart and Cisco, while a tax bill expected to boost corporate earnings passed its first - if smallest - hurdle. The DJIA rose 187.01pts, or 0.8%, to 23,458.29, the S&P 500 gained 21.04pts, or 0.82%, to 2,585.66 and the Nasdaq Composite added 87.08pts, or 1.3%, to 6,793.29.

Source: UOB Kay Hian Research - 17 Nov 2017