KUALA LUMPUR (Aug 30): The FBM KLCI defended its gains at mid-morning today and stayed above the 1,680-point level, lifted by select blue chips including Petronas-linked stocks.

At 10.02am, the FBM KLCI was up 4.41 points to 1,686.01.

The top gainers included Nestle (M) Bhd, Dutch Lady Milk Industries Bhd, British American Tobacco (M) Bhd, Petronas Dagangan Bhd, DKSH Holdings (M) Bhd, Petronas Gas Bhd, KESM Industries Bhd, Kuala Lumpur Kepong Bhd, MY EG Services Bhd (MyEG), Lafarge Malaysia Bhd, IQ Group Holdings Bhd and Aeon Credit Service (M) Bhd.

The actives included MyEG, AirAsia Bhd, AirAsia X Bhd, Borneo Oil Bhd, Malaysia Building Society Bhd, Asia Media Group Bhd, Perisai Petroleum Teknologi Bhd and Felda Global Ventures Holdings Bhd,

The decliners included Lay Hong Bhd, Latitude Tree Holdings Bhd, Carlsberg Brewery Malaysia Bhd, UMW Holdings Bhd, Panasonic Manufacturing Malaysia Bhd, UEM Edgenta Bhd, Apollo Food Holdings Bhd and Khind Holdings Bhd.

Asian shares bounced on Tuesday as doubts the Federal Reserve really would hike rates as soon as September undermined the dollar, while investors continued to count on more policy stimulus elsewhere in the world, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.4%, recouping around half of Monday's loss. Stocks in South Korea and Australia both rose around 0.6%, it said.

Hong Leong IB Research said the FBM KLCI may inch up today in the wake of an overnight rally in Dow.

"However, the 'Hari Merdeka' holiday tomorrow and the concern of higher probability of a second Fed rate hike in September may cap any rebound near 1,688 levels," it said