KUALA LUMPUR (Apr 29): The FBM KLCI fell 12.13 points or 0.7% to its intraday low as investors opted to take profit before an extended weekend.

The KLCI, which settled at 1,842.93 points, had fallen ahead of the US Federal Reserve's statement on the country's interest rate policy. Lower crude oil and palm oil prices, and a weaker ringgit had also dented sentiment.

A remisier told theedgemarkets.com, “The KLCI has seen some sell-down in the last few days, particularly in the small-capitalisation and mid-capitalisation stocks. It is no different today."

"As a long weekend is coming, the sell-down is probably in preparation for a holiday. Also, some investors have opted to take profit of their investments after last week’s rally. It is not unusual but overall, the market is clearly lacking in catalyst at this point,” he said.

Bursa Malaysia will be closed this Friday (May 1) for Labour Day and Monday (May 4) in conjunction with Wesak Day.

Today, investors are anticipating the US Federal Reserve's statement on the timing of interest rate hikes, which will affect world fund flow and stock markets.

Reuters reported that Asian share markets faded from seven-year peaks on Wednesday while investors exited crowded positions in the US dollar as the Federal Reserve wraps up a two-day policy meeting.

The broad retreat in the US currency came as a string of soft data seemed to push back the day when the Fed might start lifting rates, and ignored a rise in Treasury yields.

In Asia, Hong Kong’s Hang Seng fell 0.15% while South Korea’s Kospi declined 0.23%. Japan markets were closed for a holiday today.

Lower commodity prices and a weaker ringgit had also dented sentiment. Reuters reported that Brent crude was quoted 16 cents lower at $64.48 a barrel, while US crude fell 14 cents to $56.92.

Meanwhile, Malaysian palm oil futures edged down to a fresh eight-month low on Wednesday, tracking overnight weakness in comparative edible oils, although traders expect selling pressure to reduce ahead of the long weekend.

In currency markets, the ringgit depreciated to 3.5588 against the US dollar. Compared to the Singapore dollar, the ringgit weakened to 2.6942.

Bursa Malaysia saw 1.59 billion shares valued at RM1.89 billion traded. Gainers beat decliners by 410 to 407 while 324 counters remained unchanged.

Top gainers included British American Tobacco (M) Bhd and Oriental Holdings Bhd. Major decliners included Petronas Dagangan Bhd and plantation entity Kuala Lumpur Kepong Bhd.

The most-actively traded stock was DGB Asia Bhd.