KUALA LUMPUR (June 28): The FBM KLCI managed to narrow its losses at the midday break as end-June window dressing activities kept losses at the bourse at a minimum.

At 12.30pm, the FBM KLCI was down 1.1 points to 1,628.42. The index had earlier fallen to its intra-morning low of 1,620.94.

Market breadth was mixed with 308 losers and 297 gainers, while 295 counters traded unchanged. Volume was 620.1 million shares valued at RM584.76 million.

The top losers included British American Tobacco (Malaysia) Bhd, United Plantations Bhd, Atlan Holdings Bhd, Batu Kawan Bhd, Lay Hong Bhd, Boustead Heavy Industries Corp Bhd, Top Glove Corporation Bhd, IJM Plantations Bhd and MNRB Holdings Bhd.

The actives included Hiap Teck Venture Bhd, Nexgram Holdings Bhd, Borneo Oil Bhd, AirAsia Bhd, Malaysia Building Society Bhd, Compugates Holdings Bhd and Vivocom International Holdings Bhd.

The gainers included Fraser & Neave Holdings Bhd, Kawan Food Bhd, Aeon Credit Service (M) Bhd, Cahya Mata Sarawak Bhd, SCGM Bhd, Thong Guan Industries Bhd, Manulife Holdings Bhd and Genting Malaysia Bhd.

Sterling and Asian emerging market currencies regained some footing on Tuesday and crude oil bounced as investors scooped up beaten down assets after Britain's shock vote to exit the European Union (EU), according to Reuters.

But in a sign that sentiment remained fragile, trading volumes remained light and price action was choppy across markets, it said.

Kenanga IB Research said that despite managing to claw back most losses towards the final leg of yesterday's session, the FBM KLCI is still caught in the red as it slipped another 4.53 points or 0.27% to close lower at 1,629.52.

The research house said trading volume had also vaporised during yesterday's session as investors were mostly kept at bay amid weak market sentiment following Britain's departure from the EU.

It said market breadth was also slopping towards the dark side, with 457 decliners outnumbering 295 advancers with 360 counters untraded.

"On the chart, while the primary trend of the underlying index is still negative-bias as it currently trades below all its key SMAs, it is still observed that there is some buying support emerging whenever the key index dips into the 1,600/20 zone.

"Both relative strength index and Stochastic had rolled over to reflect the persistent selling pressure on the market. With much uncertainty over the global economy, weak ringgit and declining crude oil prices clouding the air, the FBM KLCI is expected to undergo a rather sluggish and volatile trading week ahead.

"Downside-bias trading by the local bourse within 1,600–1,640 is still very much expected by us this week, with further bear pressure to come from Wall Street's poor overnight performance.

"Overhead resistance remain capped at 1,640 (R1) and 1,650 (R2), with supports noted at 1,620 (S1) and 1,600 (S2)," it said.