KUALA LUMPUR (July 22): The FBM KLCI remained in the negative zone at the midday break today, in line with the decline at most regional markets.

At 12.30pm, the FBM KLCI fell 5.56 points to 1,652.63.

Losers led gainers by 340 to 180, while 536 counters traded unchanged. Volume was 1.59 billion shares valued at RM679.46 million.

The losers included Nestle (M) Bhd, British American Tobacco (M) Bhd, Ayer Holdings Bhd, Kuala Lumpur Kepong Bhd, Fraser & Neave Holdings Bhd, Hong Leong Bank Bhd, Chin Teck Plantations Bhd and Genting Plantations Bhd.

The actives included Sapura Energy Bhd, KNM Group Bhd, NetX Holdings Bhd, Green Packet Bhd, Iris Corp Bhd and MQ Technology Bhd.

The gainers included United Plantations Bhd, Scicom (MSC) Bhd, Pentamaster Corp Bhd, Dutch Lady Milk Industries Bhd, HeiTech Padu Bhd, Perusahaan Sadur Timah Malaysia Bhd, ViTrox Corp Bhd and Telekom Malaysia Bhd.

Asia stocks fell on Monday as investors scaled back expectations of an aggressive interest rate cut by the US Federal Reserve (Fed), while heightened Middle East tensions following Iran's seizure of a British tanker lifted crude oil prices, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.4%, it said.

Kenanga IB Research said that last Friday, Asian stocks climbed on the rising anticipation for a more dovish monetary stance from the Fed.

It said back home, the FBM KLCI recovered by 8.73 points or 0.53% to close at 1,657.66.

"Nevertheless, we note that the index is currently testing its 50-day SMA (simple moving average) after a series of sell down.

"Coupled with uninspiring key indicators, a break below the foresaid SMA should see the index heading down towards its support levels at 1,630 (S1) and 1,600 (S2).

"Conversely, resistances can be found at 1,700 (R1). A break above should see the index trend higher towards 1,730 (R2)," it said.