KUALA LUMPUR (Sept 19): The FBM KLCI dipped 0.11% in early trade this morning, dragged by select blue chips, against the backdrop of firmer regional markets.

At 9.05am, the FBM KLCI dipped 1.72 points to 1,597.77.

The decliners included Nestle (M) Bhd, Malaysian Pacific Industries Bhd, Kuala Lumpur Kepong Bhd, PPB Group Bhd, IOI Corp Bhd, Hap Seng Consolidated Bhd, British American Tobacco (M) Bhd, Hong Leong Financial Group Bhd and Ajinomoto (M) Bhd.

Asian shares edged higher on Thursday, tracking some modest Wall Street gains after the U.S. Federal Reserve cut interest rates as expected but offered mixed signals on the next easing, keeping investors cautious, according to Reuters.

The Treasury yield curve flattened as Fed Chairman Jerome Powell dashed hopes he would signal further easing while division among central bankers has increased uncertainty over how much further rates might fall, it said.

CGS-CIMB Retail Research said yesterday’s decrease in KLCI was dragged down by the oil and gas related stocks as oil prices slipped, extending losses from the previous session after Saudi Arabia’s energy minister said the Kingdom will restore lost oil production by the end of the month.

It said the Federal Reserve lowered the target range for the federal funds rate to 1.75-2 percent but offered few signals on the next move.

“The index is still stuck in a range between 1,580 and 1,620.

“Until a breakout of either side, one can expect more see-saw movements in the days ahead. Resistance: 1,620 & 1,640. Support: 1,580 & 1,572,” it said.