KUALA LUMPUR (Sept 28): The FBM KLCI reversed its earlier gains and dipped at mid-morning today, as sellers outran buyers.

At 10am, the FBM KLCI shed 1.41 points to 1,762.83. The index had earlier climbed to a high of 1,767.18.

Losers led gainers by 259 to 220, while 288 counters traded unchanged. Volume was 723.72 million shares valued at RM243.13 million.

The losers at mid-morning included Heineken Malaysia Bhd, Fraser & Neave Holdings Bhd, PPB Group Bhd, Petronas Dagangan Bhd, Latitude Tree Holdings Bhd and Kotra Industries Bhd.

The actives included Tiger Synergy Bhd, Hubline Bhd, Naim Indah Corp Bhd, KNM Group Bhd, Trive Property Group Bhd, UMW Oil & Gas Corp Bhd, EA Holdings Bhd and PUC Bhd.

The gainers included Panasonic Manufacturing Malaysia Bhd, SAM Engineering & Equipment Bhd, Nestle (M) Bhd, British American Tobacco (M) Bhd, KESM Industries Bhd, V.S. Industry Bhd, Wong Engineering Corp Bhd, Malaysian Pacific Industries Bhd, Petron Malaysia Refining & Marketing Bhd and Genting Bhd.

Asian shares were firm on Thursday while U.S. bond yields and the dollar held sizable gains made the previous day after President Donald Trump proposed the biggest U.S. tax overhaul in three decades, according to Reuters.

The dollar also drew support from strong U.S. durable goods orders data that cemented expectations the Federal Reserve is on course to raise interest rates for the third time this year in December, it said.

Kenanga IB Research said Asian bourses closed mixed after Janet Yellen, the US Federal Reserve Chairman, hinted on interest rate hike which might lead to outflows of funds from emerging markets.

The research house said that hit by the news, the FBM KLCI registered its 7th consecutive day of losses, down by 1.35 points or 0.08% to close at 1,764.24.

It said that in contrast, the market breadth was positive with 401 winners outpacing 376 winners while 414 shares traded unchanged.

“The index dipped right after the opening bell and traded in the red for the remainder of the day. Indicator-wise, the MACD deteriorated further as it slid deeper into the negative territory.

“However, Stochastic shows that the index could be potentially oversold. All in all, the index is expected to continue to be traded within its band of the past 5 months moving forward.

“The next support level to watch is 1,760 (S1), where investors may buy on weakness although a break below this level would be a huge negative, with next support present at 1,750 (S1),” it said.