KUALA LUMPUR (Aug 2): The FBM KLCI dipped 0.34% at the midday break today as sellers outpaced buyers, in line with the retreat at most regional markets.

At 12.30pm, the FBM KLCI lost 5.61 points to 1,659.62.

Losers led gainers by 420 to 207, while 330 counters traded unchanged. Volume was 777.63 million shares valued at RM616.05 million.

The top losers included Panasonic Manufacturing Malaysia Bhd, Lay Hong Bhd, Aeon Credit Service (M) Bhd, SAM Engineering & Equipment (M) Bhd, Kuala Lumpur Kepong Bhd, UMW Holdings Bhd, Versatile Creative Bhd, Time dotCom Bhd, RHB Bank Bhd and Hong Leong Financial Group Bhd.

The actives included Malaysia Building Society Bhd, TH Heavy Engineering Bhd, Vivocom Intl Holdings Bhd, PDZ Holdings Bhd, Borneo Oil Bhd, Asia Media Group Bhd and Cuscapi Bhd.

The gainers included Dutch Lady Milk Industries Bhd, Fraser & Neave Holdings Bhd, George Kent (Malaysia) Bhd, Tahps Group Bhd, Chin Teck Plantations Bhd, Hong Leong Bank Bhd, Enra Group Bhd and Public Bank Bhd.

Asian shares slipped on Tuesday, taking their cues from a modestly lower day on Wall Street, while crude oil prices stabilised after their overnight tumble and the US dollar edged higher, according to Reuters.

The Reserve Bank of Australia's policy board will decide on Tuesday whether rates should be left at 1.75% or trimmed a quarter point to a new record low, with most analysts predicting the need to combat low inflation and a rising currency will win the argument for more stimulus, it said.

Kenanga IB Research said the FBM KLCI kicked off the month of August on a higher note supported by selective buying on blue chips, as the key index stages a mild technical rebound post a few days of consolidation.

The research house said that at the closing bell, the benchmark index rose 11.97 points (up 0.724%) on strong trading volume to close at 1,665.23.

It said on the daily chart, the key index had rebounded from its consolidation channel support level.

"Meanwhile, it has also broken out from what we deemed a 'Falling Wedge' chart pattern.

"The key index could look to retest its previous high level of 1,674 (R1) from here, whereby a swift take-out of the aforesaid level could confirm the case for a higher climb towards 1,680 (R2) next.

"On the back of the coin, failure to take out the R1 level decisively soon could result in the FBM KLCI trapped within the consolidation channel, with supports capped at 1,662 (S1) followed by 1,643 (S2)," it said.