KUALA LUMPUR (Sept 18): The FBM KLCI lost 0.56% at mid-morning today as crude oil prices drifted lower and select index-linked stocks weighed on the benchmark index.

At 10am, the FBM KLCI lost 8.92 points to 1,595.38.

Losers led gainers by 278 to 192, while 256 counters traded unchanged. Volume was 522.93 million shares valued at RM214.77 million.

The losers included Nestle (M) Bhd, Kuala Lumpur Kepong Bhd, PPB Group Bhd, Heineken Malaysia Bhd, Hong Leong Financial Group Bhd, Magni-Tech Industries Bhd, Petron Malaysia Refining & Marketing Bhd, Dutch Lady Milk Industries Bhd and Panasonic Manufacturing Malaysia Bhd.

The actives included MNC Wireless Bhd, Bumi Armada Bhd, KNM Group Bhd, London Biscuits Bhd, Vsolar Group Bhd, Sumatec Resources Bhd, Opcom Holdings Bhd and OCK Group Bhd.

The gainers included Malaysian Pacific Industries Bhd, Carlsberg Brewery Malaysia Bhd, Hong Leong Industries Bhd, MISC Bhd, KLCC Property Holdings Bhd, Bursa Malaysia Bhd, Latitude Tree Holdings Bhd and UMW Holdings Bhd.

Oil prices cooled on Wednesday as Saudi Arabia said the kingdom had fully restored its oil supply following attacks on its crude facilities although caution ahead of an expected US interest rate cut kept wider financial markets in tight ranges, according to Reuters.

US Treasury yields slipped ahead of an expected interest rate cut by the Federal Reserve at its two-day policy meeting on Wednesday, it said.

Hong Leong IB Research said given Saudi Arabia managed to restore its oil processing facilities partially, the crude oil rally might subside for now.

"However, despite the quick fix at Abqaiq, the geopolitical tensions in the Middle East region could prolong, while traders would watch out for any oil disruption signals in the next few weeks as the production capacity may not be fully restored until November. FOMC (Federal Open Market Committee) meeting will be closely monitored over the next two days.

"For now, the crude oil rally has taken a pause and Saudi Arabia had partially resumed [its] processing facilities. We think stocks on the local front may recover as trading tone stabilised.

"However, crude oil related stocks that had jumped yesterday may see profit-taking activities today as the short-term hype could be taking a pause.

"Nevertheless, since the Brent oil has experienced a strong breakout this week, we think trading interest on O&G (oil and gas) stocks may sustain in the mid to long term," it said.