Asian equities traded in a narrow range as the ongoing rally in Japanese shares helped offset declines in South Korea and China. The local benchmark FBMKLCI (KLCI) eased 1.51pts or 0.10% to start the week on a softer note at 1,547.60. Most sectors closed negative in tandem with the benchmark KLCI led by losses in technology (-1.27%), plantation (-1.22%) and FBMACE (-0.82%). Transportation (+1.09%), telecommunications (+1.02%) and energy (+0.68%) were among the top gainers yesterday. Trading volume fell to 3.74bn (down from 4.07bn on Friday) while trading value eased to RM3.12bn (down from RM3.21bn previously). Market breadth remained negative as 633 decliners beat 443 winners.

The benchmark formed a black candle yesterday, which suggests indecision among market players. We continue to think that the current pullback is likely to be temporary. Since there was no follow-through buying yesterday, the index is likely to continue to chop sideways for another day or two before the next wave higher takes place. The index is likely to climb closer towards 1,570-1,583 once this consolidation ends. The immediate support is now at 1,534-1,538 followed by the rising trend line (currently at 1,536). Closing below the rising trend line may signal that a deeper correction may be taking place. Our portfolio stays in risk-on mode this week.

Gainers: 443
Losers: 633
Unchanged: 439

DOW: 39,069.23 (-0.16%)
S&P500: 5,069.53 (-0.38%)
NASDAQ: 15,976.25 (-0.13%)
FTSE100: 7,684.30 (-0.29%)
DAX: 17,423.23 (0.02%)
HSI: 16,634.74 (-0.54%)
STI: 3,171.12 (-0.43%)
KLCI: 1,547.60 (-0.10%)

USD: 4.7773 (0.00%)
AUD: 3.1274 (-0.11%)
SGD: 3.5541 (0.10%)
EUR: 5.1786 (0.21%)
GBP: 6.0573 (0.18%)
JPY: 3.1706 (-0.10%)
CNY: 0.6637 (0.01%)
HKD: 0.6106 (0.00%)

WTI: 77.58 (1.43%)
Brent: 82.57 (1.16%)
GOLD: 2,031.24 (-0.20%)
3rd MONTH FCPO: 3,863.00 (0.26%)
Msia 10 yr bond yield: 3.8660 (-0.74%)
US 10 yr bond yield: 4.2795 (0.74%)
ICE LIBOR USD 3M: 5.5922 (0.12%)
Bitcoin Futures: 55,290 (6.84%)
Source: Bloomberg