KUALA LUMPUR: The FBM KLCI retreated on Thursday despite a lift in global sentiment as the US Federal Reserve kept its interest rates near zero to support the ailing economy.

Major Asian markets started the day positive but was weighed down over the course of the morning with Japan's Nikkei shedding 0.4%.

China's benchmark index was up 0.1% while Hong Kong's Hang seng jumped 1.05%. In Southeast Asia, Singapore's Straits Times Index slumped 1.8%

At midday break, the key Malaysian index was down 10.24 points to 1,601.18, amid a broad-based fall in equities. Turnover for the morning was 6.76 billion shares valued at RM2.96bil.

Bank stocks were mostly lower with Maybank dropping five sen to RM7.70, Pubnlic Bank falling 36 sen to RM17.18, CIMB sliding four sen to RM3.56 and Hong Leong Bank was unchanged at RM15.

Petronas Chemicals was down 16 sen to RM6.12, while Petronas Gas slid 20 sen to RM16.40 and Petronas Dagangan fell 22 sen to RM21.26.

Of actives, Lambo rose one sen to five sen, Pworth gained 0.5 sen to 3.5 sen and XOX fell one sen to 24.5 sen.

Oil prices meanwhile remained stable despite a bigger-than-expected drawdown in US inventories. The persistent increase in US coronavirus cases in the US put a cap on any increases in the price of the commodity, while an unexpected increase in US gasoline stocks served to underline the weak demand.

US crude fell four cent sto US$41.23 a barrel and Brent crude edged one cent lower to US$43.74 a barrel.

In currencies, the ringgit was flat against the greenback at 4.2432. It fell 0.1% against the pound sterling at 5.5081 and was 0.1% higher against the Singapore dollar at 3.0847.