KUALA LUMPUR (July 31): The FBM KLCI drifted lower in tandem with regional markets on jitters of a fresh trade war following threats from President Donald Trump to Beijing.

At 9.05am, the FBM KLCI dipped 0.63 points to 1,642.06.

The decliners included British American Tobacco (M) Bhd, Nestle (M) Bhd, Fraser & Neave Holdings Bhd, Syarikat Takaful Malaysia Keluarga Bhd, Hong Leong Financial Group Bhd, Serba Dinamik Holdings Bhd, Kuala Lumpur Kepong Bhd, Petronas Dagangan Bhd, Hong Leong Bank Bhd and Genting Plantations Bhd.

Asian shares weakened in early trade on Wednesday, rattled by fresh trade war concerns following threats from President Donald Trump to Beijing, while increasing worries about a no-deal Brexit kept the pound under pressure, according to Reuters.

Later in the day, the U.S. Federal Reserve is widely expected to cut interest rates for the first time since the financial crisis more than a decade ago. The expected easing has supported risk asset prices worldwide, it said.

Kenanga IB Research said Asian markets mostly closed lower, in preparation for the rate cut decision by US.

It said back home, the FBMKLCI lost 5.27 points or 0.32% lower to close at 1,642.69.

“Chart-wise, the index has broken below its 50 and 100-day SMA with the formation of a “Death Cross”.

“With that we turn our outlook to a near-term bearish as the underlying trend has turned bearish.

“Key support levels can be found at 1,630 (S1) and 1,600 (S2) should the index trend lower. Conversely, overhead resistance can be seen at 1,690 (R1) and 1,720 (R2),” it said.