KUALA LUMPUR (July 29): The FBM KLCI drifted marginally lower in early this morning against a backdrop of mixed regional markets, weighed by index-linked stocks.

At 9.20am, the FBM KLCI  shed 2.12 points to 1,645.84.

The decliners included British American Tobacco (M) Bdh, Kuala Lumpur Kepong Bhd, Fraser & Neave Holdings Bhd, LPI Capital Bhd, Public Bank Bhd, MISC Bhd, Telekom Malaysia Bhd, Scientex Bhd, QL Resources Bhd and Malaysia Building Society Bhd.

Asian stocks looked set to start the week on a mixed note as U.S.-China trade talks resume and the Federal Reserve is expected to deliver its first interest-rate cut in a decade, according to Bloomberg.

Futures pointed to modest gains in Japan and Australia, while Hong Kong contracts inched lower. The S&P 500 and Nasdaq Composite indexes hit fresh records Friday as technology shares rallied. Treasuries were little changed and the dollar advanced against its major peers after White House adviser Larry Kudlow said the U.S. has ruled out plans to intervene in foreign-exchange markets, it said.

Kenanga IB Research said Asian stock markets ended the week mostly lower, as concerns on less aggressive Fed on monetary policy grew.

It said back home, the FBM KLCI fell 8.62 points or 0.52% to close at 1,647.96, registering week-on-week loss of -0.62%.

“Chart-wise, the index has broken below its 50 and 100-day SMA. Should the index form another bearish candlestick on Monday, the outlook would turn near-term bearish.

“From here, downside supports can be identified at 1,630 (S1) and 1,600 (S2). Conversely, resistances can be found at 1,700 (R1), where a break above should see the index trend higher towards 1,730 (R2),” it said.