KUALA LUMPUR (Aug 7): The FBM KLCI fell 0.46% at the midday break as Genting-linked stocks dragged the index lower against the backdrop of steadying regional markets, but managed to defend its crucial 1,600-point level.

At 12.30pm, the FBM KLCI lost 7.36 points to 1,604.43.

Losers led gainers by 359 to 162, while 494 counters traded unchanged. Volume was 1.53 billion shares valued at RM1.35 billion.

The top losers included Genting Malaysia Bhd, Genting Bhd, Public Bank Bhd, Shangri-La Hotels (M) Bhd, Malaysia Pacific Industries Bhd and G3 Global Bhd.

The actives included Genting Malaysia, Eduspec Holdings Bhd, KNM Group Bhd, NetX Holdings Bhd and Bumi Armada Bhd.

The gainers included Nestle (M) Bhd, United Plantations Bhd, Allianz Malaysia Bhd, Hong Leong Industries Bhd, Fraser & Neave Holdings Bhd, Kuala Lumpur Kepong Bhd, Carlsberg Brewery Malaysia Bhd, Heineken Malaysia Bhd and Malaysia Pacific Corp Bhd.

Philippine and Indonesian shares gained more than 1% Wednesday, after Beijing and Washington stepped up to ease escalating trade war tensions, according to Reuters.

Chinese authorities intervened to steady the yuan on Tuesday after letting it slide to its lowest in over a decade on the previous day, which had sparked accusations of currency manipulation from the United States and threatened to spread the trade war into the currency space, it said.

Affin Hwang Retail Research said the FBM KLCI Index closed up 5.93 points or 0.37% yesterday after gapping down sharply in the morning session following a 2.98% and 3.47% tumble in the S&P500 and Nasdaq respectively.

It said the intraday rebound is perceived merely as a reflexive respond by market participants after the local index recorded its 13th consecutive low from the recent intermediate rebound which peaked at 1,694.55.

"Going forward, it is anticipated that the index will take a breather with more sideways movement before resuming the present downward movement. Downward bias remains intact with immediate supports expected to emerge around 1,600, 1,590, 1,575, 1,550 and 1,503.

"Stay cautious as present downward move are relatively still at the early stage of potentially a major bear market.

"Downward movement remains intact," it said.