KUALA LUMPUR (Aug 11): The FBM KLCI fell 0.81% at the midday break today, weighed by select blue chips as regional markets traded mixed.

At 12.30pm, the FBM KLCI fell 13.44 points to 1,640.93.

The top decliners included British American Tobacco (M) Bhd, Dutch Lady Milk Industries Bhd, P.I.E. Industrial Bhd, Carlsberg Brewery (M) Holdings Bhd, Nestle (M) Bhd, Time Dotcom Bhd, Malayan Banking Bhd, Warisan TC Holdings Bhd, Guinness Anchor Bhd, Suiwah Holdings Bhd, AMMB Holdings Bhd and Latitude Tree Holdings Bhd.

The actively traded stocks included The Media Shoppe Bhd, IFCA MSC Bhd, KNM Group Bhd, Sumatec Resources Bhd, Frontken Corporation Bhd and Unisem (M) Bhd.

The gainers included Genting Plantations Bhd, Enra Group Bhd, Evergreen Fibreboard Bhd, Pintaras Jaya Holdings Bhd, V.S. Industry Bhd, Top Glove Corporation Bhd and MISC Bhd.

The US dollar lurched higher on Tuesday as China allowed its yuan to fall to levels last seen in 2012, a shift that could provide a competitive boost to exports for the world's second-largest economy, according to Reuters.

Asian stocks turned mixed as investors weighed the implications of the surprise move, which seemed to end months of officially sanctioned yuan strength, it said.

AffinHwang Capital Research said renewed currency volatility and impending Federal Reserve hikes spark a fresh new selling and that the FBM KLCI was to soften lower.

The research house said global markets remain defensive, adding that local economic news were positive and hence may cushion near-term negative sentiments in the market.

"Technical indicators indicate cautious outlook.

"Ringgit and crude palm oil volatility remain the main focus of the market," it said.