KUALA LUMPUR (June 4): The FBM KLCI dipped 0.37% at mid-morning today as operating conditions across Malaysia's manufacturing sector deteriorated in May, thereby stretching the current period of decline to four months.

Released this morning, the headline purchasing managers' index (PMI) fell to 47.6 in May from 48.6 in April.

"This was predominantly driven by the sharpest fall in new business since December 2016," said IHS Markit, which compiles the data.

At 10am, the FBM KLCI fell 6.43 points to 1,749.95.

The losers led gainers by 331 to 241, while 254 counters traded unchanged. Volume was 621.2 million shares valued at RM505.57 million.

The losers included Dutch Lady Milk Industries Bhd, KESM Industries Bhd, Tenaga Nasional Bhd, My E.G. Services Bhd (MyEG), Genting Bhd, Ta Ann Holdings Bhd and Kretam Holdings Bhd.

The actives included MyEG, Sapura Energy Bhd, Genting Malaysia Bhd, Ewein Bhd, Dagang NeXchange Bhd and Karambunai Corp Bhd.

The gainers included British American Tobacco (M) Bhd, Allianz Malaysia Bhd, Malaysia Airports Holdings Bhd, Lingkaran Trans Kota Holdings Bhd, Negri Sembilan Oil Palms Bhd, Perusahaan Sadur Timah Malaysia (Perstima) Bhd, Malaysian Pacific Industries Bhd and Hartalega Holdings Bhd.

Asian shares edged up on Monday as strong US jobs data offset worries that tariff wars between the United States and the rest of the world could drag global economic growth lower, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3% while Japan's Nikkei rose 1%, it said.

Hong Leong IB Research in a traders' brief said although Wall Street traded mildly higher last week, it expected investors to stay cautious with the renewed concerns over trade war developments between US and its trading partners.

"Should there be any further surprise move by the US, it may send jittery tone to the markets. However, with the better-than-expected jobs data, Wall Street could sustain its upward movement towards the 25,000 level.

"With the trade war concerns continue to cloud the market environment, coupled with the resurfacing of the 1MDB-related news as well as any new policies and potential review of the toll concessions by Pakatan Harapan, it may heightened the market volatility and the upside may be limited over the near term," it said.