KUALA LUMPUR (June 19): The FBM KLCI extended its loss at the midday break today and dropped 0.65%, dragged by banking heavyweights Public Bank Bhd and Malayan Banking Bhd (Maybank).

At 12.30pm, the FBM KLCI lost 11.41 points to 1,732.02.

Losers led gainers by 351 to 165, while 550 counters traded unchanged. Volume was 1.15 billion shares valued at RM943.23 million.

The top losers included Panasonic Manufacturing Malaysia Bhd, Petronas Dagangan Bhd, PPB Group Bhd, Hong Leong Financial Group Bhd, Cahya Mata Sarawak Bhd, Public Bank, MSM Malaysia Holdings Bhd and Maybank.

The actives included My E.G. Services Bhd, Nexgram Holdings Bhd, Nova MSC Bhd, Kretam Holdings Bhd, Sapura Energy Bhd, Priceworth International Bhd and Iris Corp Bhd.

The gainers included Nestle (M) Bhd, Dutch Lady Milk Industries Bhd, Heineken Malaysia Bhd, Top Glove Corp Bhd, Hong Leong Industries Bhd, Apex Healthcare Bhd, UMW Holdings Bhd, Carlsberg Brewery Malaysia Bhd and Fraser & Neave Holdings Bhd.

Asian stocks skidded to a four-month low on Tuesday as US President Donald Trump threatened new tariffs on Chinese goods in an escalating tit-for-tat trade war between the world's two biggest economies that has rattled financial markets, according to Reuters.

Trump warned on Monday that Washington would impose a 10% tariff on US$200 billion of Chinese goods after Beijing's decision to raise tariffs on US$50 billion in US goods, which was in retaliation for US tariffs announced on Friday, it said.

Hong Leong IB Research said the ongoing trade war episode between the US and China could dampen overall trading activities on the stock markets, resulting in a negative bias trading tone over the near term.

On the local market, it said that internally, investors may need to digest any new policies or news related to the 100-day manifesto by the Pakatan Harapan-led government, which may dictate the direction of the local market.

"Hence, the trading tone on the FBM KLCI could still be on a consolidation mode over the near term," it said.