KUALA LUMPUR (July 29): The FBM KLCI pared some of its loss at mid-morning today but remained lacklustre ahead of the public holiday on Tuesday in conjunction with installation of the Agong.

At 10.15am, the FBM KLCI was down 1.42 points to 1,646.54. The index had earlier slipped to a low of 1,644.68.

Losers led gainers by 344 to 242, while 322 counters traded unchanged. Volume was 813.98 million shares valued at RM431.7 million.

The top losers included British American Tobacco (M) Bhd, Fraser & Neave Holdings Bhd, Public Bank Bhd, Kuala Lumpur Kepong Bhd, Syarikat Takaful Malaysia Keluarga Bhd and Malaysia Airports Holdings Bhd.

The actives included Green Packet Bhd, Ekovest Bhd, KNM Group Bhd, Priceworth International Bhd, AirAsia Group Bhd, NetX Holdings Bhd and FGV Holdings Bhd.

The gainers included Nestle (M) Bhd, United Plantations Bhd, Ajinomoto (M) Bhd, MSM Malaysia Holdings Bhd, AirAsia, Atlan Holdings Bhd, Sarawak Oil Palms Bhd and SAM Engineering & Equipment (M) Bhd.

Asian shares got off to a cautious start on Monday as markets count down to a likely cut in US interest rates this week with much riding on whether or not the Federal Reserve signals yet more are in the pipeline, according to Reuters.

US and Chinese trade negotiators also meet in Shanghai this week for their first in-person talks since a G20 truce last month, but expectations are low for a breakthrough, it said.

Hong Leong IB Research said in the near term, all eyes remain focused on the ongoing reporting season and the resumption of US-China trade negotiations (with low expectations for a progressive deal) coupled with the crucial July 30-31 Federal Open Market Committee (FOMC) meeting (consensus expects a minimum 25bps cut).

"While most companies are beating revised-down estimates with over 75% of the 40% of the S&P 500 that had released results so far posted a stronger-than-forecast profit, but the tone and substance of management commentary is on the cautious side. We opine that the Dow to range bound within 26,800-27,400 zones.

"Ahead of the two major developments focusing on the US-China trade talks in Shanghai (July 30) and FOMC meeting (July 30-31), sentiment on the broader market could turn more cautious in this holiday-shortened week (Bursa will close on July 30 in conjunction with the installation of Agong).

"Key supports are 1,633-1,640 whilst resistances fall on 1,665-1,673 levels," it said.