KUALA LUMPUR (June 3): The FBM KLCI slipped in early trade in line with the retreat at regional markets, dragged by losses including at Tenaga Nasional Bhd and index-linked telecommunication stocks.

At 9.05am, the FBM KLCI  fell 2.64 points to 1,648.12.

The early decliners included Petronas Dagangan Bhd, British American Tobacco (M) Bhd, Bursa Malaysia Bhd, Petron Malaysia Refining & Marketing Bhd, DKSH Holdings (M) Bhd, DiGi.Com Bhd, Telekom Malaysia Bhd, Guan Chong Bhd and Tenaga Nasional Bhd.

Asian stocks began the week on the back foot in the wake of trade-war jitters from U.S. moves against Mexico and India to China’s retaliation against American measures. The yen held near a six-month high, according to Bloomberg.

U.S. futures retreated and equities in Tokyo slumped, with losses more modest in Korea and Australia. The yield on 10-year Treasuries slipped to 2.12% early Monday. Stocks are reeling and bonds rallying after the Trump administration threatened Mexico with tariffs over immigration concerns late last week. China implemented tariff hikes Saturday and announced it will take action against “unreliable” foreign companies, with a list of violators pending. Crude oil continues to slide amid global demand worries, trading near $53 a barrel, it said.

CIMB Retail Research said despite the ongoing trade war between US and China and weak crude oil prices, the FBM KLCI index closed 52.4pts or 3.3% higher week-on-week.

“During the holiday-shortened week, the index is likely to be range-bound trading around 1,650 as we expect the market to have less trading activities.

“The bourse will be closed for the Hari Raya Festival on Wednesday and Thursday. Resistance: 1,657 & 1,670. Support: 1,633 & 1,624,” it said.