KUALA LUMPUR (Nov 28): The FBM KLCI pared some of its losses at the midday break today, but the bearish tone prevailed at the local bourse.

At 12.30pm, the FBM KLCI was down 4.65 points to 1,715.21. The index had slipped to its intra-morning low of 1,709.94.

Losers led gainers by 457 to 152, while 499 counters traded unchanged. Volume was 921.73 million shares, valued at RM806.98 million.

The top losers included Tasek Corp Bhd, KESM Industries Bhd, British American Tobacco (M) Bhd, Hengyuan Refining Company Bhd, Aeon Credit Service (M) Bhd, Malaysia Pacific Industries Bhd, Panasonic Manufacturing Malaysia Bhd, Petron Malaysia Refining & Marketing Bhd, Genting Bhd and PMB Technology Bhd.

The actives included China Stationery Ltd, Borneo Oil Bhd, Hubline Bhd, PUC Bhd, DGB Asia Bhd, Trive Property Group Bhd, UMW Oil & Gas Corp Bhd, Hibiscus Petroleum Bhd and Green Packet Bhd.

The gainers included Tong Herr Resources Bhd, Petronas Dagangan Bhd, Inari Amertron Bhd, Bursa Malaysia Bhd, Nestle (M) Bhd, Petronas Gas Bhd, S P Setia Bhd, Cahya Mata Sarawak Bhd and Uchi Technologies Bhd.

Asian shares stepped back from decade highs on Tuesday, as Chinese stocks stumbled for a second straight session, while the U.S. dollar trod water ahead of a crucial Senate vote on tax reform, according to Reuters.

Investor confidence in China has been dented by rising bond yields, as Beijing steps up its crackdown on shadow banking and other risky forms of financing. Higher borrowing costs threaten to squeeze corporate profits, Reuters said.

Hong Leong IB Research in a traders’ brief said in spite of the near term uncertainty about the US tax overhaul plans and Fed latest concern on rising asset prices, Dow’s downside risks are likely to be well cushioned for the time being, amid positive economy and corporate earnings outlook, supportive monetary policies and bets the Trump administration will deliver tax cuts and other business-friendly policies.

“Key supports are 22,800-23,100, while resistances fall on 24,000-24,300 levels.

“Despite recent ringgit and oil price strength, we reiterate that KLCI will continue to lag behind the regional markets’ outperformance, underpinned largely by GE14 uncertainty, ongoing November reporting season and concern of 2018 earnings outlook.

“Although a mild technical rebound is anticipated following the formation of two hammers pattern and an oversold market, strong buying momentum is needed for the index to neutralise bearish momentum and encourage a more sustainable recovery. Weekly supports are 1700-1706, while resistances fall at 1728-1736 levels,” the research house said.