KUALA LUMPUR (Sept 20): The FBM KLCI continued traversing below the crucial 1,600-point level as domestic sentiment remained tepid.

At 10am, the FBM KLCI was down 3.85 points to 1,592.43.

Losers led gainers by 227 to 177, while 318 counters traded unchanged. Volume was 577.05 million shares valued at RM290.29 million.

The top losers included Kuala Lumpur Kepong Bhd, Nestle (M) Bhd, British American Tobacco (M) Bhd, Petronas Dagangan Bhd, KESM Industries Bhd, Hong Leong Industries Bhd, Aeon Credit Service (M) Bhd, Magni-Tech Industries Bhd and Digi.Com Bhd.

The actives included Bumi Armada Bhd, Vsolar Group Bhd, Priceworth International Bhd, Green Packet Bhd, Eco World Development Group Bhd, KNM Group Bhd, MNC Wireless Bhd, Opcom Holdings Bhd and Scicom (MSC) Bhd.

The gainers included Allianz Malaysia Bhd, Dutch Lady Milk Industries Bhd, Dufu Technology Corp Bhd, KLCC Property Holdings Bhd, G3 Global Bhd, Mega First Corp Bhd, Malayan Banking Bhd and Opcom.

Asian share prices inched higher on Friday as economic stimulus around the world eased fears of economic deceleration while crude oil prices climbed on concerns that last weekend's attacks on Saudi Arabia's oil facilities still pose supply risks, according to Reuters.

On Thursday, the S&P 500 ended flat, staying than less than 1% below its closing record high hit in July while the pan-European FTSEurofirst 300 index also came within sight of this year's peak, it said.

Hong Leong IB Research said in the short term, the Dow is likely to move in range bound mode (26,800-27,400 zones) as investors digest the divided views on the next course of actions by the US Federal Reserve in the Oct 30-31 and Dec 10-11 FOMC (Federal Open Market Committee) meetings.

"In addition, traders will be shifting their attention towards the crucial US-China trade negotiation in early October as well as the upcoming US 3Q19 reporting season in mid-October (consensus is predicting the S&P 500 earnings to decline 4.8% year-on-year from a flat performance in 1Q and2Q)," it said.

Domestically, it said the FBM KLCI being range bound to trade within 1,571-1,610 should persist given volatility in global oil prices due to increased geopolitical risks in the Middle East and upcoming US-China trade talks in October.

"On the local front, sentiment would stay cautious ahead of the FTSE Russell's World Government Bond Index (WGBI) review of Malaysia bonds on Sept 26 and the tabling of Budget 2020 on Oct 11," it said.