KUALA LUMPUR (July 29): The FBM KLCI had fallen 1.14% and slipped to below the 1,600-point level at the midday break today as Malaysia's Producer Price Index (PPI) fell 4% in June, while regional stocks struggled ahead of the US Federal Reserve's (Fed) policy review later in the day.

At 12.30pm, the KLCI was 18.33 points lower at 1,591.61.

Market breadth turned negative with 554 losers and 168 gainers, while 664 counters traded unchanged. Trading volume was 6.97 billion shares valued at RM4.38 billion.

The top losers included Top Glove Corp Bhd, Bursa Malaysia Bhd, Petronas Dagangan Bhd, Supermax Corp Bhd, Fraser & Neave Holdings Bhd, Pharmaniaga Bhd, Duopharma Biotech Bhd, Dutch Lady Milk Industries Bhd, IHH Healthcare Bhd, Petronas Gas Bhd, Genting Plantations Bhd and Scientex Bhd.

The actively traded stocks included XOX Bhd, Key Alliance Group Bhd, Bioalpha Holdings Bhd, MQ Technology Bhd, HLT Global Bhd and Iris Corp Bhd.

The gainers included Nestle (Malaysia) Bhd, Kossan Rubber Industries Bhd, Malaysian Pacific Industries Bhd, DKSH Holdings (Malaysia) Bhd, Rubberex Corp (M) Bhd, Syarikat Takaful Malaysia Keluarga Bhd, Careplus Group Bhd and PPB Group Bhd.

Reuters said the US dollar hovered just above a two-year low today, while stocks struggled, as growing worries about the US economy had investors cautious and looking to Congress and the Fed for a boost.

The Fed is expected to strike a dovish stance in its policy review later in the day and perhaps open the door to higher tolerance of inflation — something dollar bears think could squash real yields and sink the currency even further, it reported.

JF Apex Securities Research said US markets declined overnight ahead of the Fed's policy meeting and testimonies by major technology companies in an antitrust investigation.

It said earlier, European stocks ended mixed after the US planned a US$1 trillion (RM4.25 trillion) coronavirus relief plan.

“On the local market, the FBM KLCI surged 18.46 points to 1,609.94 points.

“Following the mixed performances in the US and Europe, the FBM KLCI could retest the resistance at 1,615 points,” it said.