KUALA LUMPUR (Aug 23): The FBM KLCI pared some of its losses at mid-morning today but the prevailing tepid sentiment kept the index in the negative zone.

At 10.04am, the FBM KLCI was down 1.7 points to 1,689.37. The index had earlier dipped to a low of 1,684.17.

The top losers included Aeon Credit Service (M) Bhd, Lafarge Malaysia Bhd, United Plantations Bhd, Kuala Lumpur Kepong Bhd, Carlsberg Brewery Malaysia Bhd, Fraser & Neave Holdings Bhd, Lay Hong Bhd, Southern Steel Bhd and UMW Holdings Bhd.

The actives included AirAsia X Bhd, Iris Corporation Bhd, M3 Technologies (Asia) Bhd, Nexgram Holdings Bhd and JAG Bhd.

The top gainers included Nestle (M) Bhd, Dutch Lady Milk Indsutries Bhd, Eita Resources Bhd, British American Tobacco (M) Bhd, Allianz Malaysia Bhd, Tan Chong Motor Holdings Bhd, DKSH Holdings (M) Bhd, George Kent (M) Bhd, IQ Group Bhd and OldTown Bhd.

Asia shares inched ahead while the dollar slipped on Tuesday as a dearth of major data left markets with little to do but second guess whether the Federal Reserve will raise US interest rates this year, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2%, with South Korea and Australia adding similar amounts, it said.

Hong Leong IB Research said profit taking pullback saw the FBM KLCI decline to intraday low of 1,682 before selected blue-chips support pushed the index to close at intraday high of 1,691, forming a positive long white candle.

"Despite the positive closing, we expect volatility to prevail given the moderating daily indicators as well as weekly slow stochastic reading. Key supports are 1,682, 1,675 (resistance-turned-support of July 19 high) and 1,665 (200-d SMA). On the flip side, a decisive breakout above 1,700 will lift KLCI towards 1,717/1,729 (R1/R2) targets.

"We expect corrective mode to prevail in order to neutralise overbought position. Sentiment may turn more cautious as we embrace a flurry of big caps results during the peak of ongoing August reporting season. On the external front, key focus is the global central bankers in Jackson Hole (Aug 25-27), where Janet Yellen may provide insight on the rate outlook, given that more and more Fed officials are supportive for imminent interest rate hike in coming months," it said.