KUALA LUMPUR (July 10): The FBM KLCI drifted lower at mid-morning today, weighed by select index-linked blue chips.

At 10am, the FBM KLCI drifted 1.45 points lower to 1,681.42.

Losers overtook gainers by 247 to 234, while 295 counters traded unchanged. Volume was 637.31 million shares valued at RM420.66 million.

The decliners included Chin Teck Plantations Bhd, Allianz Malaysia Bhd, British American Tobacco (M) Bhd, Carlsberg Brewery Malaysia Bhd, IJM Corp Bhd, Hong Leong Financial Group Bhd, Malaysian Pacific Industries Bhd, Public Bank Bhd and PPB Group Bhd.

The actives included UWC Bhd, London Biscuits Bhd, Green Packet Bhd, Homeritz Corp Bhd, Bumi Armada Bhd, KNM Group Bhd, AFPT Bhd and Khee San Bhd.

The gainers included UWC, KESM Industries Bhd, Amway (M) Holdings Bhd, Malaysia Airports Holdings Bhd, Pos Malaysia Bhd, Petronas Gas Bhd, Dufu Technology Corp Bhd and Petron Malaysia Refining & Marketing Bhd.

Asian shares inched ahead on Wednesday while higher Treasury yields lifted the US dollar as markets wondered if the world's most powerful central banker would confirm or confound expectations for US policy easing this month, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.2%, after three sessions of losses, it said.

Hong Leong IB Research said aside from the US Federal Reserve's testimony, to get some clues on the interest rate path moving forward, investors may look out for news related to the trade war, as top US trade officials have spoken to Chinese officials to continue negotiations to resolve the outstanding trade disputes, and US officials commented that "both sides will continues these talks as appropriate".

"Without any strong impetus in the market, we believe the trading tone could stay tepid over the near term with the Dow drifting sideways between 26,500-27,000 levels.

"The lacklustre trading tone from the overnight Wall Street may extend towards stocks on the local front amid lacking of near-term fresh leads.

"At this juncture, traders are watching closely on the interest rate path in the FOMC (Federal Open Market Committee) meeting and potential trade war news flow that may surface following the resumption of trade talks between the US and China after G20 summit.

"The KLCI could range bound between the 1,666 [and] 1,700 levels in the near term," it said.