KUALA LUMPUR (Aug 23): The FBM KLCI pared some of its loss at mid-morning Friday and crossed the 1,600-point level, while regional markets remained shaky.

At 10am, the FBM KLCI was down 1.48 points to 1,600.99. The index had earlier dipped to a low of 1,594.59.

Losers led gainers by 243 to 204, while 261 counters traded unchanged. Volume was 384.96 million shares valued at RM241.84 million.

The top losers included Nestle (M) Bhd, British American Tobacco (M) Bhd, Genting Plantations Bhd, Hap Seng Consolidated Bhd, Amway (M) Holdings Bhd, Malaysian Pacific Industries Bhd, IHH Healthcare Bhd, Hong Leong Financial Group and Tasco Bhd.

The actives included Green Packet Bhd, ARB Bhd, UWC Bhd, Alam Maritim Resources Bhd and KNM Group Bhd.

The gainers included Panasonic Manufacturing Malaysia Bhd, United Plantations Bhd, Heineken Malaysia Bhd, Ajinomoto (M) Bhd, Fraser & Neave Holdings Bhd, Petron Malaysia Refining & Marketing Bhd, Carlsberg Brewery Malaysia Bhd and Allianz Malaysia Bhd.

Asian shares struggled to make any headway on Friday as weak US manufacturing activity and uncertainty over how much further the Federal Reserve (Fed) would cut rates added to the general air of caution in markets buffeted by global growth fears, according to Reuters.

With political tumult in Hong Kong, Italy and Britain adding to the tense backdrop, investors were keenly waiting on a speech by Fed Chairman Jerome Powell later in the day at a gathering of central bankers in Jackson Hole, it said.

Hong Leong IB Research said all eyes are focusing on Powell's speech later today at a yearly central banking symposium in Jackson Hole.

The research house said the stakes are high for Powell as investors will look for hints that the Fed will cut rates in September (93.5%, according to FedWatch pool), with US President Donald Trump continuing attacking the US central bank, pressuring it to lower rates.

"To recap, the Fed cut rates by 25 basis points in July, citing 'global developments' and 'muted inflation'.

"Besides, market participants are awaiting further developments on trade war between US and China in the upcoming discussion that will be resuming by September, should it provide some optimism in crafting some trade deals, we may anticipate further upward momentum on Wall Street," it said.

On the local front, the research house said given the lingering external headwinds such as heightened US-China trade tension, rising geopolitical tensions coupled with ongoing tepid August reporting season, KLCI is expected to trend range bound within 1,580-1,620 band in the short term.

"Meanwhile, local sentiment would also be dampened by key concerns e.g. awaiting the outcome from the review on Malaysia's position in the World Government Bond Index (WGBI) in early September," it said.