KUALA LUMPUR (Oct 4): The FBM KLCI retreated at mid-morning today on sustained weaker sentiment at the domestic market.

At 10am, the FBM KLCI fell 0.36% or 6.53 points to 1,789.77. The index had earlier risen to a high of 1,798.24.

Losers led gainers by 317 to 203, while 282 counters traded unchanged. Volume was 557.99 million shares valued at RM335.53 million.

The losers included Nestle (M) Bhd, Fraser & Neave Holdings Bhd, Dutch Lady Milk Industries Bhd, Carlsberg Brewery Malaysia Bhd, Malaysia Airports Holdings Bhd, Kuala Lumpur Kepong Bhd, Tenaga Nasional Bhd and Petronas Chemicals Group Bhd.

The actives included Sapura Energy Bhd, Nova MSC Bhd, K-Star Sports Ltd, Hibiscus Petroleum Bhd and Dagang NeXchange Bhd.

The gainers included Gabungan AQRS Bhd, British American Tobacco (M) Bhd, Analabs Resources Bhd, ViTrox Corp Bhd, Pos Malaysia Bhd and Press Metal Aluminium Holdings Bhd.

The US dollar climbed an 11-month top on the yen on Thursday as stunningly strong US economic data drove Treasury yields to their highest since mid-2011, while Japanese stocks attempted to re-claim a 27-year peak, according to Reuters.

The Nikkei added 0.4% on bets the falling yen would boost sales and profits at Japan's many exporters, it said.

Hong Leong IB Research in a traders' brief said that in the US, investors will be trading on a cautious note as the 10-year treasury yield is at 7-year high, indicating that the underlying economic activity is growing positively and this could be suggesting that the Fed may continue to increase the interest rate.

"Hence, should there be any surprise on the tone of the interest rate hike, profit-taking activities may emerge.

"Despite the positive trend on Wall Street, we believe sentiment on the local front would remain subdued ahead of the 11MP mid-term review, which will be tabled on the 18th of October.

"Meanwhile, trading themes that are available for traders in the near term would be on the O&G and export driven stocks on the back of firmer crude oil price and strengthening USD outlook," it said.