KUALA LUMPUR (Jan 23): The FBM KLCI pared some of its losses at the midday break Thursday, against the backdrop of anxious regional markets.

At 12.30pm, the FBM KLCI was down 2.58 points at 1,575.40. The index had earlier dropped to a low of 1,572.35.

The broader market sentiment stayed tepid with losers leading gainers by 365 to 171, while 501 counters traded unchanged. Volume was 1.32 billion shares valued at RM848.84 million.

The decliners included Nestle (M) Bhd, Kuala Lumpur Kepong Bhd, Hong Leong Financial Group Bhd, Petronas Dagangan Bhd, Chin Teck Plantations Bhd, Dutch Lady Milk Industries Bhd, Carlsberg Brewery Malaysia Bhd, Hartalega Holdings Bhd and Genting Bhd.

The actives included Powerwell Holdings Bhd, mTouche Technologies Bhd, Vortex Consolidated Bhd, Icon Offshore Bhd, Supermax Corp Bhd and DGB Asia Bhd.

The gainers included KESM Industries Bhd, Icon Offshore, United Plantations Bhd, Batu Kawan Bhd, Pentamaster Corp Bhd, Heineken Malaysia Bhd, Public Bank Bhd, Dufu Technology Corp Bhd, Kejuruteraan Asastera Bhd and Genting Plantations Bhd.

Asian shares and US stocks fell on Thursday as investors remained anxious about the spread of a new flu-like virus in China just as millions prepared to travel for the Lunar New Year, according to Reuters.

Oil futures tumbled to seven-week lows as the contagion was expected to hit airline travel, while the International Energy Agency's warning of an oil surplus and a larger-than-expected increase in US crude inventories re-kindled fears of excess supply, it said.

Affin Hwang Capital Research said the FBM KLCI dropped 9.35 points or 0.6%, to close at 1,577.98 on Wednesday.

The research house said the index continued to retrace in yesterday's session.

It said price is now hovering just above the 1,575 immediate support level.

"Looking at price action, it seems that the downward movement which started from the 1,615 resistance level has not ended as price continues to register lower highs and lower lows.

"If the index stages a strong push below the 1,575 level, this would confirm the continuation of the downward trend. The index is likely to retest key support around 1,550 if this materialises.

"Anticipate the index to trade sideways with upward bias," it said.