KUALA LUMPUR (July 11): The FBM KLCI retreated at mid-morning today, dragged by losses at Public Bank Bhd and Petronas-linked stocks.

At 10am, the FBM KLCI dipped 0.95 points to 1,678.02. The index had earlier risen to a high of 1,681.78.

Gainers led losers by 293 to 207, while 284 counters traded unchanged. Volume was 574.71 million shares valued at RM351.95 million.

The decliners included Allianz Malaysia Bhd, KESM Industries Bhd, Public Bank, Petronas Dagangan Bhd, Syarikat Takaful Malaysia Keluarga Bhd and Petronas Gas Bhd.

The actives included UWC Bhd, My EG Services Bhd, Dolomite Corp Bhd, KNM Group Bhd, Ikhmas Jaya Group Bhd and Iskandar Waterfront City Bhd.

The gainers included Nestle (M) Bhd, British American Tobacco (M) Bhd, Yinson Holdings Bhd, Carlsberg Brewery Malaysia Bhd, UWC and Frontken Corp Bhd.

Asian stocks rose and the US dollar sagged on Thursday after Federal Reserve Chair Jerome Powell reinforced prospects of a US interest rate cut later this month, according to Reuters.

In an appearance before his congressional overseers on Wednesday, Powell confirmed that the US economy is still under threat from disappointing factory activity, tame inflation and a simmering trade war, it said.

Hong Leong IB Research said it expects the short-term trading tone on Wall Street to stay positive, pricing in the easier monetary policy moving forward.

"At the same time, investors will need to monitor closely on the trade developments between the US and China after the resumption in trade talks. Should there be any negative surprises, further upside might be capped.

"In view of the positive overnight Wall Street performance, we believe the buying interest could extend towards stocks on our local bourse.

"Investors may look out for stocks within the theme related to higher yielding stocks on the back of an interest rate down cycle environment.

"In addition, traders may monitor stocks within the O&G space as the Brent oil prices jumped 4.4% overnight," it said.