KUALA LUMPUR (Aug 18): The FBM KLCI slipped at mid-morning today weighed by select blue chips as a lack of fresh catalysts dragged the local index lower.

At 10am, the FBM KLCI was down 1.81 points to 1,570.73.

The top losers included Allianz (M) Bhd, Aeon Credit Services (M) Bhd, British American Tobacco (M) Bhd, Kuala Lumpur Kepong Bhd, Lafarge Malaysia Bhd, Boustead Holdings Bhd, IJM Corporation Bhd, Pharmaniaga Holdings Bhd, Hong Leong Financial Group Bhd and Gamuda Bhd.

The actives included Nexgram Holdings Bhd, IFCA MSC Bhd, Bumi Armada Bhd, The Media Shoppe Bhd, SapuraKencana Petroleum Bhd, AirAsia Bhd and APFT Bhd.

The top gainers included Top Glove Corporation Bhd, Time Dotcom Bhd, Globetronics Technology Bhd, Inari Amertron Bhd, Malaysian Pacific Industries Bhd, Malayan Banking Bhd, MISC Bhd, Oriental Food Industries Bhd and Scientex Bhd.

Asian shares were steady on Tuesday after strong US housing data offset concerns from a weak US manufacturing report, while the dollar's yield advantage kept it firm, according to Reuters.

Japan's Nikkei rose 0.1% while South Korean shares gained 0.4% and Australian shares rose 0.2%, it said.

Hong Leong IB Research said the FBM KLCI may witness prolong downward consolidations, primarily owing to lingering domestic issues with short-term supports at 1,550 and 1,526 (May 18, 2012 low) levels.

“Moreover, last week’s decisive breakdown of a Head-and-Shoulder (H&S) neckline support could be damaging as accelerating selling spree may push KLCI to break below 1,500 psychological levels to as low as 1,480 (worst case scenario for H&S downside objective) before commencing a more solid recovery. 

“Short-term technical rebound targets are 1,600–1,638,” it said.