KUALA LUMPUR (Sept 27): The FBM KLCI edged lower in early trade this morning, tracking the mixed regional markets.

At 9.05am, the FBM KLCI shed 0.88 points to 1,797.84.

The top losers included Hai-O Enetrprise Bhd, Top Glove Corp Bhd, IHH Healthcare Bhd, Astro Malaysia Holdings Bhd, United Malacca Bhd, Hengyuan Refining Company Bhd, Axiata Group Bhd, Poh Huat Resources Bhd, Bina Darulaman Bhd and Scientex Bhd.

Asian stocks edged lower at the open Thursday as investors assessed commentary from the Federal Reserve that reaffirmed the U.S. economy is strong enough to warrant another interest-rate increase by the end of this year. The dollar and Treasuries steadied, according to Bloomberg.

Equity benchmarks dipped in Japan and were little changed in Australia and South Korea, while futures signaled gains for stocks in Hong Kong. The S&P 500 Index dropped with the bulk of losses coming in the final 20 minutes of trading. U.S. equities had earlier gained after the central bank suggested inflation remained tepid, only to reverse as Chairman Jerome Powell said the Fed could raise rates past the perceived neutral level. Treasury 10-year yields held declines and the dollar wavered as the FOMC statement provided fodder for differing viewpoints, it said.

Hong Leong IB Research in a traders’ brief said Dow is likely to lock in brief consolidation mode ahead of the start of the US 3Q18 reporting season in early Oct, to gauge the latest earnings outlook after recent rounds of tariffs.

“Key supports are 25,600-26,000 while resistance  are 26,800-27,000 levels.

“In the near term, KLCI is likely to remain choppy due to the lack of domestic rerating catalysts, given the prospects of protracted US-China trade war, EM contagion risks, tightening financial conditions and expectations of further “belt-tightening budget 2019” to be tabled on 2 Nov.

“Nevertheless, downside risk is well-cushioned by expectations of end 3Q18 window dressing and positive development from foreign participations. Immediate supports are 1775-1785 while resistances are located near 1800-1814,”it said.