KUALA LUMPUR (Aug 19): The FBM KLCI bucked the regional trend and drifted lower to stay below the 1,600-point level.

At 12.30pm, the FBM KLCI dipped 1.6 points to 1,597.62. The index had earlier risen to a high of 1,600.66.

Gainers led losers by 262 to 252, while 472 counters traded unchanged. Volume was 1.23 billion shares valued at RM636.56 million.

The decliners included Nestle (M) Bhd, British American Tobacco (M) Bhd, Axiata Group Bhd, DKLS Holdings (M) Bhd, Kuala Lumpur Kepong Bhd, Yinson Holdings Bhd, Latitude Tree Holdings Bhd and Bintulu Port Holdings Bhd.

The actives included Sumatec Resources Bhd, Sapura Energy Bhd, NetX Holdings Bhd, Bumi Armada Bhd, Eduspec Holdings Bhd, KNM Group Bhd and Naim Holdings Bhd.

The gainers included Panasonic Manufacturing Malaysia Bhd, Bursa Malaysia Bhd, Fraser & Neave Holdings Bhd, Hong Leong Bank Bhd, Petronas Chemicals Group Bhd, Petronas Gas Bhd, Hengyuan Refining Company Bhd and DRB-Hicom Bhd.

Asian stocks tracked the Wall Street rally on Monday and found an extra tailwind from a move by China's central bank to change the way a key interest rate benchmark is set, seen by analysts as reducing borrowing costs for companies, according to Reuters.

The People's Bank of China (PBOC) on Saturday unveiled key interest rate reforms to help steer borrowing costs lower for companies and support a slowing economy caught in the grip of a bruising trade war with the United States, it said.

Affin Hwang Capital Research said the FBM KLCI Index closed slightly lower at 1,599.22, down 1.07 points or 0.07%, on Friday last week.

"The index has been in the correction phase for the past 16 months — anticipate technical relief rebound to take place from this week onwards, potentially up to the 1,650 level.

"Nonetheless, the movement of our local market may be influenced by global sentiments, particularly from the US.

"In the event the US market continues to slide significantly, this may limit the potential upside of our market and we may move in tandem with the US market. Investors may want to look to adopt a strategy of short-term trading on fundamental sound stocks as well as large-cap and index-linked companies.

"Downward movement remains intact," it said.