KUALA LUMPUR (Oct 22): The FBM KLCI got off to a muted start in line with the retreat at the regional markets.

At 9.05am, the FBM KLCI fell 3.04 points to 1,729.10.

Asian share markets fell anew on Monday as investors braced for the peak of the U.S. earnings season while angst over Saudi Arabia, Italy and Brexit kept geopolitics front and centre, according to Reuters.

Adding to the air of nervousness was an early 0.4 percent drop in E-Mini futures for the S&P 500, while safe haven Treasuries caught a bid, it said.

Hong Leong IB Research in a traders’ brief said in the US, the stronger-than-expected corporate earnings season would be able to cushion the volatile markets recently.

“To recap, sentiment was dragged by the unsettled trade war, 10-year Treasury yield and interest rate up-cycle outlook. The Dow’s upside could be capped along 26,000.

“We believe Malaysia’s stock market will be traded on a sideways trend over the near term following the 11MP midterm review and prior to the “belt-tightening mode” Budget 2019 as investors will need to wait for more clarity before further investing in Malaysia’s equities.

“Hence, we opine that the KLCI will be trading within the range of 1,720-1,750,” it said.

The early decliners included Syarikat Takaful Malaysia Bhd, Public Bank Bhd, Nestle (M) Bhd, Fraser & Neave Holdings, Cypark Resources Bhd, Petronas Chemicals Group Bhd. Sime Darby Plantation Bhd, Tenaga Nasional Bhd, Affin Holdings Bdh and CCM Duopharma Biotech Bhd.