KUALA LUMPUR (June 1): The FBM KLCI is on course to commence June on a lacklustre note today, with decliners outpacing gainers in line with the weaker regional markets.

At 12.30pm, the FBM KLCI was down 0.72 points to 1,625.28.

Losers led gainers by 438 to 207, while 331 counters traded unchanged. Volume was 661.52 million shares, valued at RM742.94 million.

The top losers included Panasonic Malaysia Manufacturing Bhd, MNRB Holdings Bhd, Lay Hong Bhd, Kluang Rubber Company (Malaya) Bhd, Versatile Creative Bhd, Dutch Lady Milk Industries Bhd, Public Bank Bhd, IJM Plantations Bhd and BLD Plantation Bhd.

The actives included Bumi Armada Bhd, CIMB Group Holdings Bhd, China Automobile Parts Holdings Bhd, IIH Healthcare Bhd, Hibiscus Petroleum Bhd, AirAsia X Bhd and AirAsia Bhd.

The gainers included British American Tobacco (M) Bhd, Ajinomoto (Malaysia) Bhd, Fraser & Neave Holdings Bhd, Aeon Credit Services (M) Bhd, Amway (M) Holdings Bhd, Ajiya Bhd and APM Automotive Holdings Bhd.

Asian stocks were on a weak footing on Wednesday as a slip in crude oil prices dampened investors' appetite for riskier assets, while the recently bullish dollar stalled against the euro and yen, following a mixed bag of U.S. economic data, according to Reuters.

Japan's Nikkei lost 0.6% as the yen firmed, it said.

Kenanga IB Research said that heavyweights such as CIMB, Maybank and Axiata weighed down the FBM KLCI, after US index provider MSCI reduced its weighting for Malaysian equities to 3.09%, from 3.43% previously, effective today (1 June).

Nonetheless, the research house said there was still strong buying support emerging towards the 1,620 (S1) support level, as depicted by the final two-hour climb seen in the FBM KLCI.

At the closing bell, it said the FBM KLCI managed to claw back from its earlier losses to slip just 3.87 points (0.24%) and close at 1,626.0, on the back of high trading volume.

“On the chart, the benchmark index continued on its sideways trading pattern on the back of flattish MACD histogram and relative strength index (RSI) indicator, albeit with the MACD histogram already at a bullish crossover and rather oversold RSI.

“With uncertainties regarding the MSCI rebalancing looking to ease starting today, we are still of the view that the FBM KLCI could look to inch upwards within 1,620-1,650 this week,” it said.