KUALA LUMPUR (July 18): The FBM KLCI extended its losses in early trade this morning as broader market sentiment remained tepid in line with the cautious regional markets, tracking the overnight close at Wall Street.

At 9.05am, the FBM KLCI dipped 2.66 points to 1,654.87.

The early decliners included Nestle (M) Bhd, Axiata Group Bhd, Public Bank Bhd, ViTrox Corp Bhd, Pentamaster Corp Bhd, Unisem (M) Bhd and Gabungan AQRS Bhd.

Stocks in Asia were poised to track losses seen in the U.S. session amid a flurry of corporate earnings and lingering concern over the Sino-American trade dispute. Treasuries climbed, according to Bloomberg.

Futures pointed lower for shares in Japan, Hong Kong and Australia. The S&P 500 Index lost 0.7% earlier and sentiment may be dented after Netflix Inc. tumbled following a surprise loss of U.S. customers in the second quarter. Treasury yields declined by the most in more than two weeks. Monetary policy decisions in South Korea and Indonesia will be in focus Thursday in addition to earnings from Taiwan Semiconductor and China Evergrande. Oil extended this week’s slide, it said.

Kenanga IB Research said the Asian markets continue to display weakness as fears on escalation of the US-China trade dispute could further impact China’s growth.

It said at home the FBM KLCI lost 11.41 points (-0.68%) to close at 1,657.53.

“Chart-wise, the index is observed to be consolidating between a range of 1,650 and 1,700, likely due to the lack of major catalyst within the market.

“Meanwhile, signals from key momentum indicators continue to appear uninspiring.

“From here, resistances can be found at 1,700 (R1). A break above should see the index trend higher towards 1,730 (R2). Conversely, downside supports can be identified at 1,650 (S1) and 1,600 (S2),” it said.