KUALA LUMPUR (July 22): The FBM KLCI pared some of its losses at the midday break today but sellers still ruled, in line with the overall sentiment at regional markets.  

At 12.30 p.m., the FBM KLCI was down 1.38 points to 1,656.16. The index had earlier dipped to its intra-morning low of 1,651.90.

Sellers led buyers by 318 to 264, while 334 counters traded unchanged. Volume was 682.75 million shares, valued at RM535.96 million.

The top losers included Malaysia Airports Holdings Bhd, Heineken Malaysia Bhd, DKSH Holdings (M) Bhd, Carlsberg Brewery (M) Holdings Bhd, Lafarge Malaysia Bhd,PPB Group Bhd, Hwang Capital (Malaysia) Bhd,British American Tobacco (M) Bhd,Goldis Bhd and Petronas Gas Bhd.

The actives included TH Heavy Engineering Bhd, Sanichi Technology Bhd, EKA Noodles Bhd, Asia Media Group Bhd, KNM Group Bhd and Iris Corporation Bhd.

The gainers included KESM Industries Bhd, Nestle (M) Bhd, Cycle & Carriage Bintang Bhd, Genting Bhd, Gadang Holdings Bhd, Hong Leong Industries Bhd and Tasek Corporation Bhd.

Asian stocks dipped on Friday, after weak corporate results halted Wall Street's record run overnight, while the yen held to large gains made after the Bank of Japan governor downplayed the need for "helicopter money" stimulus, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.4%. It remained close to its nine-month high seen on Thursday, and is headed for a fractional 0.1% gain on the week, it said.

Kenanga IB Research said the U.S. Department of Justice’s move to sue and seize more than US$1.0 billion of assets linked to state fund 1MDB rattled investors, leading the FBM KLCI to dive 12.07 points or 0.72% to close at 1,657.54.

The research house said market breadth turned sour, as sellers outpaced buyers with 649 counters against 202 counters, despite better regional markets’ performances.

It said the technical picture of the FBM KLCI has turned uninspiring after yesterday’s sell down, as the benchmark index broke down from both its 1,662 support, as well as uptrend support trend line on strong trading volume.

“The heavy selling pressure is depicted by the strong reversal of relative strength index and Stochastic indicator from their overbought zone, turning the table on the recent bull-run.

“On this case, should the local bourse fail to swiftly recapture the 1,662 (R1) mark decisively soon, further downside is envisaged at 1,650 (S1) and possibly 1,642 (S2) next.

“All in, we expect the FBM KLCI to trade downside-bias towards 1,650 (S1) later today,” it said.