KUALA LUMPUR (Nov 27): The FBM KLCI fell 0.95% at the middday break today after Morgan Stanley cut Malaysia to "underweight" with 3% implied downside as market tends to underperform when in rising emerging market and falling oil prices provide headwind with budget set at US$70/bbl (RM293.55/bbl) while earnings face further risk as fiscal consolidation bites into infrastructure projects

At 12.30pm, the FBM KLCI fell 16.19 points to 1,685.8.

Losers beat gainers by 560 to 162, while 302 counters traded unchanged. Volume was 1.17 billion shares valued at RM1.27 billion.

The top losers included Nestle (M) Bhd, British American Tobacco (M) Bhd, Genting Malaysia Bhd, Genting Bhd, Petronas Dagangan Bhd, Batu Kawan Bhd, Kuala Lumpur Kepong Bhd, IJM Plantations Bhd, Press Metal Aluminium Holdings Bhd, Heineken Malaysia Bhd and Carlsberg Brewery Malaysia Bhd.

The actives included Genting Malaysia, Sapura Energy Bhd, Lay Hong Bhd, Tatt Giap Group Bhd, Dagang NeXchange Bhd, My EG Services Bhd, Datasonic Group Bhd and Key Alliance Group Bhd.

The gainers included Aeon Credit Service (M) Bhd, LPI Capital Bhd, SAM Engineering & Equipment (M) Bhd, Dufu Technology Corp Bhd, United Plantations Bhd, Syarikat Takaful Malaysia Keluarga Bhd and PPB Group Bhd.

Asian share markets struggled to extend a global rebound on Tuesday after US President Donald Trump seemed to quash hopes of a trade truce with China, dampening risk appetite across the region, according to Reuters.

Japan's Nikkei managed to eke out a 0.1% gain, and Chinese blue-chips added 0.6%, it said.

Kenanga IB Research said Asian markets closed mostly higher yesterday, as investors tried to pick up cheap stocks ahead of an expected Trump-Xi meeting this weekend, in hopes for signs of softening US-China trade war.

It said back home, the FBM KLCI gained 6.11 points or 0.36% to close at 1,701.99.

The research house said despite the close above its 20-day SMA, the technical outlook remains fragile for now as the index is still hovering below other key SMAs.

"However, should there be further positive development, we may review our stance.

"From here, immediate support levels to watch for are 1,680 (S1) and 1,650 (S2) where a break below would complete what is now a potential descending triangle.

"Should the market sentiment improve from here, key levels of resistance to look for are at 1,740 (R1) and 1,760 (R2)," it said.