KUALA LUMPUR (Aug 3): The FBM KLCI dropped 0.54% at the midday break today as sentiment stayed tepid in line with the fall at most regional markets, weighed by index-linked banking stocks.

At 12.30pm, the FBM KLCI extended its losses and fell 8.75 points to 1,651.48.

Losers led gainers by 343 to 303, while 352 counters traded unchanged. Volume was 1.25 billion shares valued at RM646.71 million.

The top losers included British American Tobacco (Malaysia) Bhd, Public Bank Bhd, Tahps Group Bhd, Rapid Synergy Bhd, RHB Bank Bhd, Kossan Rubber Industries Bhd, AMMB Holdings Bhd, Fraser & Neave Holdings Bhd and Hong Leong Bank Bhd.

The actively traded stocks included Dagang NexChange Bhd, Hubline Bhd, PDZ Holdings Bhd, Malaysia Building Society Bhd, TH Heavy Engineering Bhd, Vivocom Intl Holdings Bhd, AE Multi Holdings Bhd and AirAsia X Bhd.

The gainers included DanaInfra Nasional Bhd, Panasonic Manufacturing Malaysia Bhd, Versatile Creative Bhd, CB Industrial Product Holding Bhd, George Kent (Malaysia) Bhd and MISC Bhd.

Asian shares fell on Wednesday while the yen lorded over a weakened US dollar as fears that the Bank of Japan may retreat from its massive bond-buying campaign added to a shakeout in debt markets globally, according to Reuters.

Worryingly for energy shares, the broad-based decline in the dollar was still not enough to spare US crude oil from its first finish under US$40 (RM162.66) a barrel since April, it said.

Kenanga IB Research said the tumbling crude oil price that has declined by more than 20% since its peak back in June had weighed on the regional market, whereby the FBM KLCI had also slipped 5 points, or 0.3%, to close lower at 1,660.23 yesterday.

It said the weakening crude oil price has also led to a domino effect as it dragged down the ringgit against major global currencies, further dampening domestic sentiment.

"On the daily chart, the benchmark index had failed to create a higher high post its mild rebound play during the week's kick-off.

"Following yesterday's decline, it seems that a key index has been trapped within a consolidation zone and is expected to trade volatilely within the range of 1,650 (S1)–1,674 (R1) for the week," it said.