KUALA LUMPUR (Sept 21): The FBM KLCI dipped 0.75% at mid-morning today as index-linked banking stocks declined in line with the retreat at most global markets.

At 10am, the FBM KLCI lost 12.58 points to 1,656.87.

The top losers included P.I.E. Industrial Bhd, Malayan Banking Bhd, AMMB Holding Bhd, Hong Leong Bank Bhd, LPI Capital Bhd, Malaysia Airports Holdings Bhd, Genting Malaysia Bhd, Hong Leong Industries Bhd and Genting Plantations Bhd.

The actively traded stocks included AirAsia Bhd, AirAsia X Bhd, Bumi Armada Bhd, Ingenuity Consolidated Bhd, Aemulus Holdings Bhd, APFT Bhd and IFCA MSC Bhd.

The gainers included Batu Kawan Bhd, Hong Leong Financial Group Bhd, Datasonic Group Bhd, Tex Cycle Technologies Bhd, Kuala Lumpur Kepong Bhd and United Malacca Bhd.

Asian shares followed Wall Street lower on Monday after the Federal Reserve's decision to keep interest rates at record lows raised fresh concerns about growth globally, particularly in China, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1%, with Australia down 2.3% and South Korea off 1.4%. Japan was closed for a long holiday, it said.

Hong Leong IB Research said although the FBM KLCI’s weekly technical reading remains positive to retest 1,725 (200-w SMA) and 1,760 (50-w SMA) in the medium to long term, the potential of further strong rally in the near term has diminished, reflected by signs of fatigue in the daily chart after a 12.1 point drop last Friday.

“Key resistances are situated at 1,692 (17 Sept high), 1707 (100-d SMA) and 1,725. Conversely, immediate key supports are 1,652 (61.8% FR) and 1,624 (50% FR) zones.

“A decisive break below 1,624 will trigger another round of selldown to revisit 1,560–1,570 levels,” it said.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)