KUALA LUMPUR (May 16): The FBM KLCI reversed its earlier losses and climbed at mid-morning, but gains were seen limited as investors remained cautious.

At 10am, the FBM KLCI was up 2.36 points to 1,850.56. The index had earlier dipped to a low of 1,841.83.

Losers led gainers by 293 to 288, while 282 counters traded unchanged. Volume was 833.93 million shares valued at RM405.27 million.

The gainers included British American Tobacco (M) Bhd, Heineken Malaysia Bhd, Aeon Credit Service (M) Bhd, Nestle (M) Bhd, Fraser & Neave Holdings Bhd, Ajinomoto (M) Bhd, Allianz Malaysia Bhd, Hartalega Holdings Bhd and PMB Technology Bhd.

The actives included Advance Synergy Bhd, Sapura Energy Bhd, UMW Oil & Gas Corp Bhd, Borneo Oil Bhd, Sino Hua-An International Bhd, Eden Inc Bhd, Priceworth International Bhd and Malaysian Resources Corp Bhd.

The decliners included Panasonic Manufacturing Malaysia Bhd, Sarawak Plantations Bhd, Syarikat Takaful Malaysia Bdh, Magna Prima Bhd, PPB Group Bhd, Berjaya Media Bhd and United Plantations Bhd.

Asian markets fell in early trade on Wednesday after Pyongyang called off talks with Seoul, throwing a major U.S.-North Korean summit into question, and a spike in the U.S. 10-year Treasury yield to a seven-year high knocked sentiment on Wall Street, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1 percent, it said.

Hong Leong IB Research in a traders’ brief said following yesterday’s slide, the market volatility is likely to remain with key focus now on the crucial US/China talks this week.

“On a separate note, markets have been pricing in for three more hikes in 2018, given fed-funds futures now show a 54% chance for hikes in June, September and December. Key supports are 24,000-24,300 while resistances are 25,000.

“Despite the positive KLCI technicals, we think sentiment on the local bourse could still stay cautious pending more clarity on the cabinet line-up and anticipate more economic and fiscal policy changes, which will introduce short term uncertainties.

“At this current juncture, we think investors may continue to look into defensive (consumer and REITs) as well as export-oriented stocks (amid stronger USD) for short term trading purposes.

“Key supports are 1,830-1,840 while resistances are 1,880-1,890,” it said.