KUALA LUMPUR (Jan 8): The FBM KLCI remained firmly below the 1,600-point mark at the midday break as regional markets were roiled in the aftermath of escalating tensions between the US and Middle East.

At 12.30pm, the FBM KLCI was down 16.18 points at 1,594.86. The index had earlier fallen to a low of 1,589.65.

Market breadth stayed negative with 585 losers, 87 gainers while 490 counters traded unchanged. Volume was 2.08 million shares valued at RM928.82 million.

The losers included Nestle (M) Bhd, Carlsberg Brewery Malaysia Bhd, Allianz Malaysia Bhd, PPB Group Bhd, Hong Leong Financial Group Bhd, Kuala Lumpur Kepong Bhd, Dutch Lady Milk Industries Bhd, Public Bank Bhd, Heineken Malaysia Bhd and Hong Leong Industries Bhd.

The actives included Alam Maritim Resources Bhd, Priceworth International Bhd, Trive Property Group Bhd, NetX Holdings Bhd, Sapura Energy Bhd, Velesto Energy Bhd and Hibiscus Petroleum Bhd.

The gainers included Panasonic Manufacturing Malaysia Bhd, Amway (M) Holdings Bhd, Poh Kong Holdings Bhd, TSR Capital Bhd, GHL Systems Bhd, Tomei Consolidated Bhd and Southern Acids (M) Bhd.

Reuters reported that financial markets were roiled on Wednesday after Iran fired missiles at US forces in Iraq, sending Asian stocks and US Treasury yields sliding and sharply lifting oil prices as investors feared a wider conflict in the Middle East.

Iran's missile attacks on the Ain Al-Asad air base and another in Erbil, Iraq, early Wednesday came hours after the funeral of an Iranian commander whose killing in a US drone strike has intensified tensions in the region, it said.

Affin Hwang Capital Research said the FBM KLCI rebounded, gaining 13.28 points or 0.8%, to close at 1,611.04 on Tuesday.

It said the index has been congesting sideways within the 1,615-1,588 range for the past week. A break above or below the stipulated range may give traders/investors further clues about the next short-term direction of the index.

"However, as the tension between US & Iran intensifies (Iran has fired rockets at an Iraqi airbase hosting American troops), sentiments are likely to be unfavourable.

"Looking at key indicators on the daily timeframe, upside also perceived to be quite limited in the near term. Nonetheless, with talks about BNM likely to cut rate as soon as this month in order to boost the country's economy, this might cushion any downside in the local market.

"Overall, short-term outlook looks to be neutral and sideways with downward bias. Anticipate index to trade sideways with downward bias," it said.