KUALA LUMPUR (June 18): The FBM KLCI fell 1.07% at mid-morning today as regional markets spooked by the escalating US-China trade spat mostly retreated.

At 10am, the FBM KLCI lost 18.8 points to 1,742.98.

Losers led gainers by 410 to 146, while 244 counters traded unchanged. Volume was 574.11 million shares valued at RM416.19 million.

The top losers included Nestle (M) Bhd, Kuala Lumpur Kepong Bhd, Petronas Dagangan Bhd, Hong Leong Bank Bhd, Public Bank Bhd, Kretam Holdings Bhd, Allianz Malaysia Bhd, Hong Leong Industries Bhd, Tenaga Nasional Bhd and PPB Group Bhd.

The actives included Iris Corp Bhd, Kretam, Sapura Energy Bhd, Cuscapi Bhd, Barakah Offshore Petroleum Bhd, My E.G. Services Bhd and FoundPac Group Bhd.

The gainers included Fraser & Neave Holdings Bhd, Malaysia Airports Holdings Bhd, Genting Bhd, Genting Plantations Bhd, Petronas Chemicals Group Bhd, United Plantations Bhd, New Hoong Fatt Holdings Bhd and Alliance Bank Malaysia Bhd.

Asian shares retreated on Monday after US President Donald Trump cranked up trade tensions with China by going ahead with tariffs on Chinese imports, prompting Beijing to immediately respond in kind, according to Reuters.

Fears of a trade war added to pressure on oil prices, which extended Friday's big fall amid expectations of higher output from OPEC and Russia, it said.

Hong Leong IB Research in a traders' brief said in the US, the threat of a trade war may extend pressure on stock markets as the Trump administration could be looking at an additional US$100 billion in import tariffs on China goods.

"Hence, the upside on the Dow may be capped over the near term.

"With the resurfacing of trade war concerns between the US and China, we think the trading sentiment could turn slightly negative throughout the regional bourses, affecting the FBM KLCI's performance, eventually.

"Nevertheless, we believe the downside risk on the broader market could be limited as most of the stocks were recovering from their oversold region," it said.