KUALA LUMPUR (Sept 18): The FBM KLCI retreated at the midday break as losers outpaced gainers, despite having clawed into positive territory for a brief period in the morning session.

At 12.30pm, the FBM KLCI was down 0.65 point at 1,785.68. The index had risen to its intra-morning high of 1,787.01.

Losers led gainers by 324 to 291, while 480 counters traded unchanged. Volume was 1.05 billion shares valued at RM629.96 million.

The top losers included Panasonic Manufacturing Malaysia Bhd, DanaInfra Nasional Bhd, KESM Industries Bhd, Dutch Lady Milk Industries Bhd, MSM Malaysia Holdings Bhd, Hong Leong Industries Bhd, Kossan Rubber Industries Bhd, Top Glove Corp Bhd, Pos Malaysia Bhd and Petronas Gas Bhd.

The actives included Sino Hua-An International Bhd, Mlabs Systems Bhd, Vivocom Intl Holdings Bhd, Trive Property Group Bhd, SKH Consortium Bhd, AT Systematization Bhd, AirAsia X Bhd, Iris Corp Bhd and Anzo Holdings Bhd.

The gainers included United Plantations Bhd, Petron Malaysia Refining & Marketing Bhd, Lafarge Malaysia Bhd, Hengyuan Refining Company Bhd, IQ Group Holdings Bhd, Scientex Bhd, Malayan Banking Bhd and Petronas Dagangan Bhd.

Asian shares hit decade highs on Monday and the US dollar held firm early in a week in which the US Federal Reserve is likely to wrestle with its bloated balance sheet as part of a long reversal of super-cheap money worldwide, according to Reuters.

There was relief the weekend passed with no new provocation by North Korea, though Pyongyang's nuclear ambitions will be centre stage when US President Donald Trump addresses world leaders at the United Nations on Tuesday, it said.

Kenanga IB Research said Asian markets brushed off initial concern over renewed geopolitical tensions.

It said that last Friday, most Asian equities markets managed to reverse initial losses following earlier concerns over the latest North Korea's missile test.

The research house said that on the local front, the FBM KLCI was up 4.96 points (0.28%), closing at 1,786.33.

"However, market breadth was negative as 509 losers outpaced 369 gainers while 350 shares traded unchanged. From a charting perspective, the index rebounded from its mid-day dip to close at intra-day high forming a 'Hammer' candlestick.

"Supported by exceptionally high trading volume, yesterday's move signals that investors were willing to buy-on-dips.

"Overall, given that most of the key indicators remain in a positive state, the outlook remains supportive of a move higher.

"Any weakness is expected to be shallow and temporary with support levels of 1,770 (S1) and 1,760 (S2) likely to experience buying on dips," it said.