KUALA LUMPUR (Aug 2): The FBM KLCI pared some of its losses at mid-morning today, but sentiment at the local market stayed tepid in line with the regional markets.

At 10am, the FBM KLCI was down 1.71 points to 1,663.52. The index had earlier dipped to a low of 1,662.50.

The decliners included Panasonic Manufacturing Malaysia Bhd, Time dotCom Bhd, Genting Plantations Bhd, UMW Holdings Bhd, Genting Bhd, Globetronics Technology Bhd, Latitude Tree Holdings Bhd, Kerjaya Prospek Group Bhd and AMMB Holdings Bhd.

The actives included TH Heavy Engineering Bhd, Malaysia Building Society Bhd, PDZ Holdings Bhd, Vivocom Intl Holdings Bhd, Cuscapi Bhd and AirAsia X Bhd.

The gainers included New Hoong Fatt Holdings Bhd, Tahps Group Bhd, George Kent (Malaysia) Bhd, Chin Teck Plantations Bhd, Lingkaran Trans Kota Holdings Bhd, Scientex Bhd, British American Tobacco (Malaysia) Bhd and P.I.E. Industrial Bhd.

Asian shares edged lower in early trading on Tuesday, taking their cues from a modestly lower day on Wall Street as US crude oil prices slid, according to Reuters.

The Reserve Bank of Australia's policy board will decide on Tuesday whether rates should be left at 1.75% or trimmed a quarter point to a new record low, with most analysts predicting the need to combat low inflation and a rising currency will win the argument for more stimulus, it said.

Hong Leong IB Research said the FBM KLCI could still inch higher in the near term to test 1,675–1,684 zones, driven by positives such as receding fears of immediate hike in US Fed rates, prospects of greater fiscal and monetary measures by key central banks and governments, and hopes of more stimulus measures by Malaysian government as well as policy easing by Bank Negara Malaysia to stimulate slowing economy.

"However, the ongoing oil price consolidation, 1MDB concern, the start of August reporting season, and recent credit ratings downgrade by Fitch on several GLCs will cap further strong upside," it said.