KUALA LUMPUR (Sept 15): The FBM KLCI fell 4.85 points or 0.3% after vacillating between losses and gains as crude oil's overnight 3% drop weighed on oil and gas-related shares.

As crude oil takes centre stage, US interest rate speculation shared the spotlight ahead of the US Federal Reserve's Federal Open Market Committee (FOMC) meeting this Tuesday and Wednesday (September 20 and 21).

US rate hike sentiment does not bode well for Asian markets in anticipation that investors will shift their money back to US dollar-denominated assets.

In Malaysia today, the KLCI was traded at 1,656.54 points at 9:17am
afte rising 1.39 points to 1,662.78 points at 9:08am. Yesterday, the index fell 15.79 points to close at 1,661.39 points.

Today, analysts said they were mindful of the KLCI's negative technical indicators.
   
"Following yesterday’s rout, KLCI outlook has turned decisively bearish following the breakdown below 1,664-1,675 supports," Hong Leong Investment Bank Bhd wrote in a note.

"In the wake of the long weekend holiday (Bursa will close on 16 Sep for Malaysia Day), sliding oil prices, weakening RM and ahead of 20-21 Sep FOMC meeting, KLCI is expected to undergo an extended consolidation," Hong Leong said.

The KLCI tracked overnnight US share losses. Reuters reported that Wall Street edged lower on Wednesday as investors stewed about future interest rate hikes and as cheaper oil dragged down energy shares, although Apple surged to its highest level this year.

Oil prices fell about 3% for a second straight day on Wednesday, after data showing large weekly builds in US petroleum products offset a surprise draw in crude stockpiles. Brent crude futures settled down
US$1.25 or 2.7% at US$45.85 per barrel.