KUALA LUMPUR (July 26): The FBM KLCI remained in negative zone at the midday break today, in line with the caution at regional markets.

At 12.30 p.m., the FBM KLCI dipped 4.22 points to 1,664.04.

Losers led gainers by 381 to 245, while 340 counters traded unchanged. Volume was 722.98 million shares, valued at RM529.10 million.

The top decliners included Nestle (M) Bhd, British American Tobacco (M) Bhd, Lafarge Malaysia Bhd, Hong Leong Bank Bhd, KLCC Property Holdings Bhd, Cycle & Carriage Bintang Bhd, Batu Kawan Bhd and Kuala Lumpur Kepong Bhd.

The actives included TH Heavy Engineering Bhd, Borneo Oil Bhd, O&C Resources Bhd, AirAsia X Bhd, ManagePay Solutions Bhd and Hiap Teck Venture Bhd.

The gainers included Panasonic Malaysia Manufacturing Bhd, Dutch Lady Milk Industries Bhd, Ajinomoto (Malaysia) Bhd, Huat Lai Resources Bhd, Ajiya Bhd, Public Bank Bhd and Fraser & Neave Holdings Bhd.

Caution gripped Asian markets on Tuesday, sending the safe-haven yen scampering higher, ahead of central bank meetings in the United States and Japan, while a fresh skid in oil dampened energy stocks, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan was 0.2% firmer, still consolidating after recently topping out at nine-month highs, it said.

Kenanga IB Research said the FBM KLCI staged a final-hour rally to perk up by 10.84 points or 0.65% on selective buying, to close at 1,668.26 yesterday, with market breadth turning against the bears, with 415 advancers outpacing 364 decliners.

The research house said throughout most of yesterday’s session, investors’ sentiment was still dampened by the on-going U.S. probe over the 1MDB issue, as well as continued weakening of the ringgit, as well as crude oil prices.

It said the FBM KLCI has reversed from its recent downtrend, after managing to recapture its key 1,662 level.

It said while MACD histogram is rather flattish, some signs of revival is seen in the relative strength index indicator to reflect the resurgence of buying interest on the market that could offer the local bourse an opportunity to climb further up.

“Nonetheless, we reckon that the benchmark index could possibly trade on a volatile fashion within 1,650-1,680 with downside-bias later today, given the lingering domestic concerns, lacklustre overnight Wall Street performances, as well as anticipation over the upcoming U.S. FOMC meeting that will continue to influence investors’ sentiment,” it said.