KUALA LUMPUR (Sept 7): The FBM KLCI fell marginally today, erasing earlier gains after Malaysia reported disappointing trade figures.

The country's exports fell 5.3% to RM59.9 billion in July from a year earlier, on lower sales of crucial products like electrical and electronic items to major destinations like China and Japan. Imports in July also fell 4.8% year-on-year to RM57.9 billion.

Meanwhile, Bank Negara has left its benchmark interest rate unchanged at 3%, after July's surprise cut.

The KLCI closed 0.35 point lower at 1,689.57, dragged down by stocks such as IOI Corp Bhd and Westports Holdings Bhd. The benchmark index moved between 1,680.09 and 1,691.61 today.

Across Asia, Japan's Nikkei 225 fell 0.41%, Hong Kong's Hang Seng dipped 0.19% and South Korea's Kospi was 0.23% lower.

Malacca Securities Sdn Bhd analyst Kenneth Leong said the unexpected fall in July exports and the central bank's decision to maintain its interest rate contributed to the KLCI's lower close.

"Export numbers for July are lower than expected. Meanwhile, some economists and analysts expected Bank Negara to cut the rates again," he told theedgemarkets.com via telephone.

Moving forward, he opined that there is not much trading interest as next week will be a short trading week. He said the US's interest rate decision will continue to be closely watched.

On Bursa Malaysia today, a total of 1.57 billion shares worth RM1.58 billion were traded. There were 411 gainers against 354 losers.

Nestle (M) Bhd led gainers while Dutch Lady Milk Industries Bhd was the top decliner. The top-active counter was Sanichi Technology Bhd.