KUALA LUMPUR (Dec 30): The FBM KLCI drifted lower at the midday break today, weighed by select blue chips.

At 12.30pm, the FBM KLCI was down 2.02 points to 1,635.91. The index had earlier risen to its intra-morning high of 1,639.46.

Losers edged gainers by 317 to 287, while 317 counters traded unchanged. Volume was 761.95 million shares valued at RM529.65 million.

The decliners included Kuala Lumpur Kepong Bhd, Panasonic Manufacturing Malaysia Bhd, Apollo Food Holdings Bhd, KLCC Property Holdings Bhd, Hong Leong Bank Bhd, Enra Group Bhd, Pintaras Jaya Bhd and ABM Fujiya Bhd.

The actives included Borneo Oil Bhd, Sumatec Resources Bhd, Perisai Petroleum Teknologi Bhd, Hibiscus Petroleum Bhd, RGB International Bhd, Trive Property Group Bhd and SMTrack Bhd.

The gainers included Nestle (Malaysia) Bhd, British American Tobacco (Malaysia) Bhd, Fraser & Neave Holdings Bhd, Batu Kawan Bhd, Petronas Dagangan Bhd and Dutch Lady Milk Industries Bhd.

Asian stocks looked set to end 2016 on an upbeat note, while profit-taking weighed on the US dollar and the euro held near a two-week high after spiking early in the day, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5% on Friday, diverging from Wall Street, which posted slight declines overnight, it said.

Kenanga IB Research said the FBM KLCI extended its gain during yesterday's session by climbing 7.63 points (0.468%) to 1,637.93, underpinned by follow-through buying on select blue chips such as Tenaga Nasional Bhd (up 2.21%) and Petronas Chemicals Group Bhd (up 1.75%).

It said that on the chart, the FBM KLCI managed to ride on its technical rebound play from two days ago to close above the resistance-turned-support level of 1,630 (S1).

The research house said further hook-up seen by the relative index strength and Stochastic from their oversold positions are reflecting the increased buying interest arising from the year-end window dressing activities.

"Going into the last trading session of 2016 before the long holiday weekend, we view that any follow-through window dressing activities will likely see the benchmark index testing its immediate resistance level of 1,640 (R1).

"If a decisive breach above the R1 level occurs, the underlying index could look to gear towards 1,651 (R2) next.

"Meanwhile, key support levels are currently tied at 1,630 (S1)/1,620 (S2)," it said.