KUALA LUMPUR (June 15): The FBM KLCI reversed its earlier losses at the midday break today, lifted by select blue chips, but the broader market sentiment remained wary in line with the weaker regional markets.

At 12.30pm, the FBM KLCI rose 1.35 points to 1,627.46. The index had earlier dipped to its intra-morning low of 1,619.78.

Decliners outpaced gainers by 362 to 238, while 310 counters traded unchanged. Volume was 787.92 million shares valued at RM583.55 million.

The gainers included Dutch Lady Milk Industries Bhd, Huat Lai Resources Bhd, United U-Li Corporation Bhd, Genting Bhd, Lii Hen Industries Bhd, Hong Leong Industries Bhd, Scientex Bhd and Malayan Banking Bhd.

The actives included Sanichi Technology Bhd, China Automobile Parts Holdings Ltd, LKL International Bhd, Bumi Armada Bhd, Vivocom International Holdings Bhd, AirAsia Bhd and AirAsia X Bhd.

The top losers included British American Tobacco (M) Bhd, Malaysian Pacific Industries Bhd, Petronas Gas Bhd, Sarawak Plantation Bhd, Berjaya Food Bhd, Petronas Dagangan Bhd, Bursa Malaysia Bhd and Malaysia Airports Holdings Bhd.

Asian shares were slightly weaker but recovered from near three-week lows on Wednesday as markets digested US index provider MSCI's decision not to include domestic Chinese equities in its indexes and Brexit fears drove investors to assets such as US bonds and the yen, according to Reuters.

Mainland Chinese shares, among Asia's worst performers this year, were mixed while Hong Kong slid, as markets, which had expected Chinese A-shares to be included in the emerging market index, considered the announcement, it said.

Kenanga IB Research said the FBM KLCI continued to trade in the red yesterday (June 14) as it declined 3.66 points (0.23%) to close at 1,626.11 amid much uncertainties over the Brexit referendum, US Fed meeting that starts tonight and potential inclusion of China's A-share into MSCI latest weighting, which possibly led to some foreign fund outflows.

The research house said that on the chart, the FBM KLCI continued to decline further post its technical gap down formed two days ago.

It said forming a 'Hammer' candlestick on the daily chart, the key index seems to find some support at the 1,620 support level.

"Nonetheless, the overall technical picture is still on a downside-bias as all key momentum indicators (MACD, RSI and Stochastic) are still portraying a negative picture.

"With the falling Ringgit, weaker Crude oil price and much uncertainties looming over the global economy, we continue to view that the FBM KLCI will trade downside-bias towards its immediate support level of 1,620 in the next few days," it said.