KUALA LUMPUR (Feb 25): The FBM KLCI remained in negative territory at mid-morning today, weighed by select index-linked blue chips.

At 10am, the FBM KLCI fell 2.78 points to 1,718.64.

Losers led gainers by 302 to 238, while 291 counters traded unchanged. Volume was 788.22 million shares valued at RM454.23 million.

The losers included Lingkaran Trans Kota Holdings Bhd, Gamuda Bhd, Petron Malaysia Refining & Marketing Bhd, Petronas Dagangan Bhd, IJM Corp Bhd, Axiata Group Bhd, Elsoft Research Bhd, British American Tobacco (M) Bhd and Hong Leong Financial Group Bhd.

The actives included Dayang Enterprise Holdings Bhd, Sapura Energy Bhd, Perdana Petroleum Bhd, Seacera Group Bhd, Gamuda, Naim Holdings Bhd, Bumi Armada Bhd and Ekovest Bhd.

The gainers included Petra Energy Bhd, Nestle (M) Bhd, Batu Kawan Bhd, Dayang, Naim, Hong Leong Industries Bhd, Yinson Holdings Bhd, Petronas Chemicals Group Bhd and Petronas Gas Bhd.

Asian share markets looked well set on Monday after US President Donald Trump said he would delay a planned increase on Chinese imports as talks between the two sides were making "substantial progress", according to Reuters.

The Australian dollar, a liquid proxy for China investments, got a mild lift from the news and further gains were expected for the yuan, it said.

Hong Leong IB Research said taking cues from the progressive US-China trade talks and increasingly dovish US Federal Reserve coupled with Trump's latest announcement on Sunday to delay the US increase in tariffs beyond the March 1 dateline followed by a potential meeting later with China President Xi Jinping at Mar-a-Lago to conclude an agreement, the Dow is envisaged to trend higher in the near term.

"However, growing worries over the global economy coincide with a deteriorating US 1Q19 earnings outlook (as consensus S&P 500's EPS (earnings per share) growth have shrunk to below -1% from around ~5% at the start of the year) may limit further strong advance as Wall St had enjoyed pretty extraordinary rally since Dec low, reflected by more and more upside exhaustion signals.

"Stiff resistances are near 26,300-26,500 while supports are pegged at 25,000-25,600 zones," it said.

On the FBM KLCI, the research house said the Dow's superb 11.6% rally year-to-date on the back of positive expectations of the US-China trade talk and a dovish Fed should bode well for KLCI to retest immediate resistance at 1,738 levels.

"However, sentiment would remain cautious as the ongoing 4Q18 earnings season (is) hitting its peak this week.

"In addition, foreign trade flows have turned negative last week and may limit the upside potential on the key index. Supports are near 1,700-1,706 levels," it said.