KUALA LUMPUR (Oct 10): The FBM KLCI reversed its earlier gains and retreated at mid-morning as sentiment turned tepid.
At 10am, the FBM KLCI shed 0.37 points to 1,773.78. The index had earlier risen to a high of 1,781.79.
The losers led gainers by 282 to 198, while 292 counters traded unchanged. Volume was 480.01 million shares valued at RM306.78 million.
The decliners included Nestle (M) Bhd, Malaysian Pacific Industries Bhd, British American Tobacco (M) Bhd, Amway (M) Holdings Bhd, Carlsberg Brewery Malaysia Bhd and Dufu Technology Corp Bhd.
The actives included Ho Wah Genting Bhd, AirAsia X Bhd, Gamuda Bhd, Globaltec Formation Bhd, Nova MSC Bhd, Sapura Energy Bhd and Hibiscus Petroleum Bhd.
The gainers included SAM Engineering & Equipment (M) Bhd, Hong Leong Financial Group Bhd, Perusahaan Sadur Timah Malaysia (Perstima) Bhd, United Plantations Bhd, Atta Global Group Bhd, Eng Kah Corp Bhd, Can-One Bhd and Sime Darby Plantation Bhd.
Asian shares steadied in early Wednesday trade after world stocks hit eight-week lows the previous day on worries about global economic growth, although the pound stayed firm on hopes for a Brexit deal, according to Reuters.
MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.3%, while Japan's Nikkei gained 0.25%. The Australian benchmark was up 0.11%, it said.
Hong Leong IB Research in a traders' brief said despite the 10-year treasury yield retreating from the multi-year high, the concerns over interest rate upcycle environment could dampen the sentiment moving forward.
"Also, the unsettled trade war between US and China may pose downside risk towards stock markets. Hence, we opine that the Dow's upside will be limited over the near term and the resistance will be located around 27,000," it said.
The research house said it expects negative sentiment to spill over on the local front, tracking weaker performance on Wall Street and investors are likely to deploy a wait-and-see approach ahead of both the 11MP mid-term review (Oct 18) and Budget 2019 (Nov 2) events.
"Nevertheless, O&G sector may trade actively following a rebound in Brent crude oil prices, which is hovering near US$85 level," it said.