KUALA LUMPUR (Sept 27): The FBM KLCI drifted lower in early trade Friday and remained below the 1,600-point level as investor sentiment stayed tepid as Malaysian bonds were kept review for a downgrade by index provider FTSE Russell.

FTSE Russell said on Thursday that Malaysian bonds, which were on review for a downgrade that would have excluded them from the index, were also retained on the watch list.

At 9,05am, the FBM KLCI dipped 2.57 points to 1,590.43.

The decliners included Aeon Credit Service (M) Bhd, Nestle (M) Bhd, Petronas Dagangan Bhd, Hai-O Enterprise Bhd, Lafarge Malaysia Bhd, IOI Corp Bhd, RHB Bank Bhd, Kerjaya Prospek Group Bhd and Lii Hen Industries Bhd.

Stocks in Asia looked set for a mixed start after a dip in U.S. equities and gains in Treasuries, with investors assessing the latest on trade and American politics, according to Bloomberg.

Futures rose in Japan and Australia, and slid in Hong Kong. The S&P 500 ended modestly lower after the release of a whistle-blower complaint central to the latest political drama and reports the U.S. is unlikely to extend a waiver allowing American firms to supply China’s Huawei Technologies. Defensive shares rose as Treasury yields fell. Meantime, in a surprise move, FTSE Russell opted not to add Chinese bonds into its flagship World Government Bond Index, it said.

CGS-CIMB Retail Research said the local bourse closed 3.42 points higher but remained below the 1,600-point level yesterday.

“The index is still stuck in a range between 1,580 and 1,620. Until a breakout of either side, one can expect more see-saw movements in the days ahead.

“Nevertheless, we notice that local bourse seems to have stabilized around the said range. Resistance: 1,620 & 1,640. Support: 1,580 & 1,572,” it said.