KUALA LUMPUR (March 11): The FBM KLCI fell in early trade on Wednesday, in line with its regional peers, dragged by losses including at banking giants CIMB Group Holdings Bhd and Malayan Banking Bhd as well as Genting Bhd.

At 9.02am, the FBM KLCI fell 5.92 points to 1,783.81.

The top losers included Dutch Lady Milk Industries Bhd, Fraser & Neave Holdings Bhd, UMW Holdings Bhd, CIMB Group Holdings Bhd, Syarikat Takaful Malaysia Bhd, Karex Bhd, Genting Bhd and Malayan Banking Bhd.

Asian stocks fell to a two-month low on Thursday as nervous markets recoiled on worries about an earlier U.S. interest rate hike, while such a prospect helped send the dollar to a 12-year high against the euro, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.4 percent after touching its lowest since January. Japan's Nikkei dipped 0.1 percent and Australian and South Korean shares lost 1.1 percent and 0.7 percent, it said.

JF Apex Securities Research in a market preview Wednesday said US markets plunged more than 1.5% following the surge in US dollar and decline in oil price.

It said the Dow and S&P500 saw their gains for the year wiped out overnight, adding that European stocks closed lower following concerns of Greece's bailout negotiations starting today.

“Back home, the FBM KLCI came off its intra day high of 1799 points to close 2.01 points lower at 1789.73 points after a last minute drop in Digi shares.

“Following the bearish performance in the US, we expect the KLCI to be negative today and test its support of 1780 points,” it said.