KUALA LUMPUR (Oct 17): The FBM KLCI dipped in early trade Thursday, on some mild profit taking in line with tentative regional markets.

At 9.05am, the FBM KLCI shed 1.91 points to 1,572.99.

The early decliners included Hong Leong Financial Group Bhd, Kuala Lumpur Kepong Bhd, PPB Group Bhd, Zhulian Corp Bhd, Hap Seng Consolidated Bhd, IOI Corp Bhd, Tenaga Nasional Bhd, Carimin Petroleum Bhd, Scientex Bhd and Superlon Holdings Bhd.

Asian stocks were set for a mixed start Thursday as investors gauged a weak U.S. consumer report that triggered a rally in Treasuries. U.S. equities earlier edged lower, according to Bloomberg.

Futures were flat in Japan, while contracts rose in Hong Kong and pointed lower in Australia. The S&P 500 Index slid as energy and technology shares retreated. The dollar and Treasury yields slipped after an unexpected drop in retail sales boosted market pricing for an October rate cut by the Federal Reserve, it said.

CGS-CIMB Retail Research said the International Monetary Fund (IMF) has warned that risks to global financial stability remain high, substantially due to the ‘Chimerica’.

It said Chimerica is a term used to describe the economic relationship between the US and China.

“As KLCI heads higher towards the falling 30-day and 50-day EMAs, some mild profit taking could probably set in.

“Further bounce (if it occurs) may be capped as the long term trend for FBMKLCI is still down. Resistance: 1,580 & 1,600. Support: 1,548 & 1,500,” it said.