KUALA LUMPUR (July 17): The FBM KLCI pared some of its gains at mid-morning today, as local market sentiment remained muted.

At 9.58am, the FBM KLCI was up 3.7 points to 1,758.70. The index had earlier risen to 1,759.52.

The gainers included Ajinomoto (M) Bhd, Petron Malaysia Refining & Marketing Bhd, British American Tobacco (M) Bhd, Aeon Credit Service (M) Bhd, Petronas Dagangan Bhd, Econpile Holdings Bhd, Allianz Malaysia Bhd, Malaysia Airports Holdings Bhd, Genting Plantations Bhd and Genting Bhd.

The actives included Vivocom Intl Holdings Bhd, Sterling Progress Bhd, MLabs Systems Bhd, ManagePay Systems Bhd, APFT Bhd, Dolphin International Bhd and Priceworth International Bhd.

The top losers included HCK Capital Group Bhd, Eurospan Holdings Bhd, Muhibbah Engineering (M) Bhd, PLB Engineering Bhd, MESB Bhd, Scientex Bhd, Encorp Bhd and Mega First Corporation Bhd.

Asian stocks rose on Monday after the Dow and S&P 500 hit record highs on Friday on bets the Federal Reserve's accommodative monetary policy will continue following lacklustre US data, with that view sending the US dollar reeling to a 10-month low, according to Reuters.

Markets are awaiting China's second-quarter gross domestic product, due at 0200 GMT. Economists expect the economy to have expanded 6.8% from a year earlier, cooling from the previous quarter's 6.9% pace, it said.

Hong Leong IB Research in a traders' brief today said that driven by overnight record gains in Wall Street, the FBM KLCI inched up 1.2 points last Friday at 1,755 to wrap up the listless week lower by 5 points (+6.9% YTD).

It said sentiment was tepid in the absence of fresh catalysts and market breadth was negative with 369 gainers as compared to 469 losers with focus mainly on ACE counters and penny stocks.

HLIB Research said on the back of better-than-expected financial results and a pair of tame inflation and weak retail sales numbers, which dulled prospects of more interest rate hikes this year, the Dow rose 85 points at a fresh new high of 21,638. Sentiment was also boosted by a less hawkish Fed testimony and a rebound in oil and gas stocks.

"On Wall St, investors' optimism of an encouraging 2Q17 results and accommodative monetary policy is likely to provide a boost to Dow in the near term towards 22,000 levels, supported by bottoming up technical indicators.

"On Bursa Malaysia, the FBM KLCI may be due for a mild technical rebound this week after falling four straight weeks to play catch up with regional peers. Nevertheless, any rebound is likely to be capped near 1,774 levels due to lack of fresh catalysts. Key supports are 1,740-1,750," it said.