KUALA LUMPUR (Nov 2): The FBM KLCI reversed its earlier gains and fell at the midday break as sentiment turned bearish.

At 12.30pm, the FBM KLCI fell 3.72 points to 1,740.21. The index had earlier risen to its intra-morning high of 1,747.17.

Losers led gainers by 356 to 241, while 500 counters traded unchanged. Volume was 1.47 billion shares valued at RM879.45 million.

The top losers included British American Tobacco (M) Bhd, Tasek Corp Bhd, Ajinomoto (M) Bhd, Petronas Gas Bhd, Petronas Dagangan Bhd, IHH Healthcare Bhd, Sapura Energy Bhd, United Plantations Bhd and MISC Bhd.

The actives included Trive Property Group Bhd, Sino Hua-An International Bhd, Berjaya Corp Bhd, Ekovest Bhd, Sapura Energy, Borneo Oil Bhd and UMW Oil & Gas Corp Bhd.

The gainers included Panasonic Manufacturing Malaysia Bhd, Nestle (M) Bhd, PMB Technology Bhd, New Hoong Fatt Holdings Bhd, Kim Loong Resources Bhd, Press Metal Aluminium Holdings Bhd, Batu Kawan Bhd and Malaysian Pacific Industries Bhd.

Asian shares touched a 10-year high on Thursday after the US Federal Reserve expressed optimism about the economy, virtually cementing the case for a year-end rate hike as investors awaited the formal nomination of the next head of the central bank, according to Reuters.

But investors were nervous as they awaited a tax bill from squabbling Republicans in the US House of Representatives, which was expected later in the session after a one-day delay, it said.

CIMB Retail Research said despite the firmer Asian markets, the local barometer continued to weaken yesterday.

The research house said the local index since Oct 10 failed to tally with the positive flow of MSCI Asia ex-Japan Index, which has climbed to its new record high on Wednesday.

"We would remain bearish for the immediate term as long as the FBM KLCI stays below 1,759.

"Meanwhile, the US Fed kept interest rates unchanged, as was widely expected. Resistance: 1,750 & 1,760. Support: 1,729 & 1,705," it said.