KUALA LUMPUR (July 22): The FBM KLCI fell in early trade as market breadth soured in line with the fall at regional markets, exacerbated by the ripples created by the actions of the United States Department of to sue on Wednesday to seize more than US$1 billion in assets they said were tied to money stolen from state fund 1Malaysia Development Bhd.

At 9.02am, the FBM KLCI dipped 2.33 points to 1,655.21.

The early decliners included British American Tobacco (M) Bhd, PPB Group Bhd, Nestle (M) Bhd, MISC Bhd, Hong Leong Bank Bhd, Genting Bhd, Public Bank Bhd and Axiata Group Bhd.

Asian stocks dipped early on Friday after weak corporate results halted Wall Street's record run overnight, while the yen held to large gains made after the Bank of Japan's governor downplayed the need for "helicopter money" monetary policies, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1 percent but is still headed for a 0.4 percent gain on the week. South Korea's Kospi lost 0.4 percent and Australian shares dropped 0.2 percent, it said.

JF Apex Securities Research in a market preview today said US markets declined overnight and halted the DJIA's 9-day winning streak as oil price fell and investors turned cautious ahead of next week's Federal Reserve meeting. 

It said that earlier, European stocks were mixed after the European Central Bank kept interest rate unchanged.

“On the local market, the FBM KLCI lost 12.07 points to 1657.54 points on foreign selling following the findings of US on 1MDB.
“Following the mixed performance in the US and Europe, the FBM KLCI could hover below the resistance of 1685 points with support at 1610 points,” it said.