KUALA LUMPUR (Aug 5): The FBM KLCI extended its loss in early trade this morning, tracking regional markets, and fell 0.41% weighed by select index-linked blue chips.

At 9.05am, the FBM KLCI lost 6.64 points to 1,620.12.

The top losers included Kuala Lumpur Kepong Bhd, Nestle (M) Bhd, Serba Dinamik Holdings Bhd, Petronas Dagangan Bhd, Public Bank Bhd, Genting Plantations Bhd, Tenaga Nasioanl Bhd, Hong Leong Bank Bhd, DiGi.Com Bhd and Press Metal Aluminium Holdings Bhd.

Asian shares extended their losses on Monday as a sharp escalation in the Sino-U.S. trade war kept finiancial markets on edge, while the Japanese yen and bonds held near recent peaks as nervous investors stuck with perceived safe havens, according to Reuters.

U.S. President Donald Trump abruptly decided on Thursday to slap 10% tariffs $300 billion in Chinese imports, stunning markets and ending a month-long trade truce. China vowed on Friday to fight back, it said.

CGSCIMB Retail Research said the FBMKLCI index lost another 21points week-on-week as market sentiment was dented by the less aggressive US monetary easing cycle as well as the disappointing European Central Bank’s interest rate decision.

It said the renewed escalation of US-China trade war also kept investors off risky bets. The ongoing US-China trade dispute is expected to act as a drag on global market sentiment.

“The trend is your friend and the trend is down at least in the short term. As the index clawed back to below the previous wedge resistance (red line) and also all of the EMAs, we reckon that the short term trend is still down.

“With the August reporting month looming, trading is expected to be cautious at best. Resistance: 1,645 & 1,660. Support: 1,626 & 1,617,” it said.