KUALA LUMPUR (Dec 5): The FBM KLCI moved sideways amid the negative sentiment surrounding the market after Italian Prime Minister Matteo Renzi failed to win a constitutional reform referendum.

The index closed 3.99 points or 0.24% lower at 1,624.97 after touching an intra-day high of 1,631.41.

"If you look at the market, it has been trading on the sideways basically, with very low volume as most investors wait at the sidelines," said Fundsupermart senior analyst Lee Tien Xiang.

"Now that the Italian referendum is over, the next key event to watch out for will be the FOMC (Federal Open Market Committee)'s meeting, which will be in less than two weeks' time," Lee said.

He added there was an improvement in risk appetite as uncertainties have abated, but the market remains unexciting.

Across the board, only 1.14 billion shares worth RM1.35 billion were traded, with 297 gainers and 440 decliners, while 347 counters were unchanged.

British American Tobacco (M) Bhd was the top gainer while Dutch Lady Milk Industries Bhd was the biggest decliner. The most active counter was Hibiscus Petroleum Bhd, which saw 53.5 million shares changing hands.

Across the region, the Nikkei share average dropped 0.8% to 18,274.99, its lowest closing since Nov 22. Reuters reported that the Nikkei fell as the Italy vote creates selling opportunity.

Hong Kong's Hang Seng Index fell 0.26%, and South Korea's Kospi was down 0.37%. Nearer to home, Singapore's STI edged higher by 0.81%.