KUALA LUMPUR (June 16): The FBM KLCI snapped its losing streak and edged up at mid-morning today on some window dressing activities, lifted by select blue chips.

But the overall market sentiment remained weaker with decliners outpacing gainers.

At 10.01am, the FBM KLCI rose 3.15 points to 1,725.31.

The top gainers included United Plantations Bhd, British American Tobacco (M) Bhd, Petronas Dagangan Bhd, Petronas Gas Bhd, Nestle (M) Bhd, Golden Land Bhd, Only World Group Holdings Bhd, Power Root Bhd and MISC Bhd.

The actives included IFCA MSC Bhd, Frontken Corporation Bhd, Spring Gallery Bhd, APFT Bhd, Vsolar Group Bhd and Globaltec Technology Bhd.

The top losers included Danainfra Nasional Bhd, Allianz (M) Bhd, Batu Kawan Bhd, Carlsberg Brewery (M) Holdings Bhd, Malaysian Pacific Industries Bhd and Hartalega Holdinhgs Bhd.

Asian stocks were subdued early on Tuesday as financial markets braced for the possibility of Greece defaulting on its debt, while a two-day policy meeting of the U.S. Federal Reserve's monetary committee starting later in the session also counselled caution, according to Reuters.

Global equity markets have felt a pinch after talks between Athens an its creditors broke down over the weekend, with Greece only having two weeks before it has to repay 1.6 billion euro to the International Monetary Fund. Sentiment soured further on Monday as both sides hardened their stance, it said.

Hong Leong IB Research said the FBM KLCI continued to be trapped in downtrend after hitting year-to-date high of 1867.5 on April 27, given the lack of fresh catalysts and nagging domestic issues.

The research house said following the violation of 1727 (June 8 low) support as well as selldown in Wall St and European markets, the FBM KLCI was poised to head lower to 1718 (76.4% FR), 1706 (7 Jan low) and 1700 support levels in the near term.

“However, we still believe 1,700 psychological level will be defended, given the presence of local funds support ahead of the widely-anticipated June window dressing and grossly oversold levels.

“A swift recapture of the 1750 level (downtrend line from 1867.5)

is vital for the local bourse to break its downtrend trajectory. A

decisive breakout above 1750 will spur index to retest 1769 (50% FR) and 1774 (30-d SMA) territory,” it said.