KUALA LUMPUR (Oct 18): The FBM KLCI got off to a muted start in line with its regional peers ahead of the tabling of the 11 Malaysia Plan mid-term review later today.

At 9.10am, the FBM KLCI shed 1.49 points to 1,739.10.

The losers included Nestle (M) Bhd, KESM Industries Bhd, Hartalega Holdings Bhd, Public Bank Bhd, Tenaga Nasional Bhd, Malaysia Airports Holdings Bhd, Lafarge Malaysia Bhd, Kimlun Corp Bhd and Genting Malaysia Bhd.

Stocks in Asia were off to a muted start, mirroring their US counterparts, after a mixed bag of earnings and concerns over rising rates weighed on investor confidence. Treasuries steadied and the US dollar extended a rise as Federal Reserve (Fed) minutes appeared to lean toward more interest-rate increases, according to Bloomberg.

The yuan was little changed after the US Treasury refrained from naming China a currency manipulator in its semi-annual report on foreign-exchange rates, averting an escalation of a trade war. Japanese shares were little changed, while stocks slipped in Australia. Equity-index futures showed Hong Kong is poised for gains after traders return from a holiday, while Chinese futures point to losses. US equity-index futures were lower after the S&P 500 Index failed to extend the biggest rally since March, closing flat. The 10-year Treasury yield held at 3.2%, having risen after minutes showed Fed officials appeared to favor an eventual move in rates above the level they see as neutral for the economy, it said.

Hong Leong IB Research in a traders’ brief said the Dow is likely to extend its consolidation mode on the back of upcoming US mid-term election and ongoing 3Q18 earnings season.

“Moreover, lingering concerns over US-China trade discussions progress and geopolitical tensions in Italy and Middle East coupled with the ascent of US 10Y bond yields could pose further downside risks to Wall St. Key supports are 24,200-24,800 while resistance are near 26,000-26,300 levels.

“Ahead of the 11MP mid-term review today and the Budget 2019 coupled with overnight Dow’s retreat, risk off mode prevails and any rebound would be capped at 1,755 zones (key supports: 1,683-1,700).

“Market participants could be staying sidelines due to lack of strong rerating catalysts and persistent foreign selling of RM32 million yesterday (its 10th straight day), amounting to a massive RM1.18 billion outflow in October against RM66 million inflow in September,” it said.