KUALA LUMPUR (Feb 13): The FBM KLCI retreated in early trade, dragged by losses at key index-linked blue chips including Axiata Group Bhd and Public Bank Bhd.

At 9.05am, the FBM KLCI slipped 0.88 points to 1,686.53.

The early decliners included British American Tobacco (M) Bhd, Aeon Credit Service (M) Bhd, Petronas Dagangan Bhd, Malaysia Airports Holdings Bhd, MISC Bhd, UMW Holdings Bhd, Axiata Group Bhd, Lotte Chemical Titan Holding Bhd, Public Bank Bhd and Berjaya Auto Bhd.

Asian stocks pulled ahead and safe-haven government bonds came under further pressure on Wednesday on optimism the United States and China might be able to hammer out a deal to resolve their nearly year-long trade dispute, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 percent, it said.

Kenanga IB Research said Asian share markets closed mostly higher as investors hope for positive developments from the U.S. – China trade talks.

It said back home, the FBMKLCI slipped marginally by 1.15 points (-0.07%) to close at 1,687.41.

“Overall, we maintain our neutral outlook, as the index remains above the 20 and 50 day-SMAs but other momentum indicators are starting to show signs of slowing down. 

“A positive outcome from the trade talk should see the index trend higher to its resistances at 1,730 (R1) and 1,800 (R2).

“Should the index break below both the 20 and 50-day SMA, support levels can be identified at 1,650 (S1) and 1,600 (S2),” it said.