KUALA LUMPUR (Aug 1): The FBM KLCI rose 0.61% at the midday break today, in line with the gains at most regional markets, lifted by select blue chips.

At 12.30pm, the FBM KLCI rose 10.2 points to 1,663.46.

Gainers led losers by 347 to 277, while 344 counters traded unchanged. Volume was 964.39 million shares valued at RM806.54 million.

The gainers included Nestle (Malaysia) Bhd, Dutch Lady Milk Industries Bhd, British American Tobacco (Malaysia) Bhd, Fraser & Neave Holdings Bhd, Carlsberg Brewery Malaysia Bhd, New Hoong Fatt Holdings Bhd, Public Bank Bhd, KESM Industries Bhd, Sime Darby Bhd and CIMB Group Holdings Bhd.

The actives included TH Heavy Engineering Bhd, Vivocom Intl Holdings Bhd, AirAsia X Bhd, PDZ Holdings Bhd, XOX Bhd and Malaysia Building Society Bhd.

The losers included Panasonic Manufacturing Malaysia Bhd, Hong Leong Financial Group Bhd, Lingkaran Trans Kota Holdings Bhd, Scientex Bhd, Asdion Bhd, Tasek Corporation Bhd and Petronas Gas Bhd.

Asian shares hit a one-year high on Monday after disappointing US economic growth data reduced expectations that the US Federal Reserve will raise interest rates in the next few months, according to Reuters.

US gross domestic product increased at a 1.2% annual rate in the April–June period, less than half of the 2.6% growth rate economists had expected, it said.

Kenanga IB Research said over the past week, the FBM KLCI has been undergoing a retracement phase underpinned by the absence of fresh catalyst, 1MDB scandal, weaker oil price and ringgit.

It said the recent credit ratings downgrade by Fitch on several government-linked companies added salt to wounded investors sentiment.

It said the FBM KLCI's technical picture is also bearish-biased, whereby the key index had rolled over from its previous high of 1,670.55 points and is currently capped by its short- and mid-term SMA.

"The bears are likely to persist on dominating the scene this week, as key momentum indicators such as relative strength index and Stochastic are also hooking down further to reflect the incremental selling pressure on the market.

"Taking all these into consideration, we are in view that the FBM KLCI will trend on a downside-bias trajectory towards 1,643 (S1) and possibly 1,620 (S2) further this week," it said.