KUALA LUMPUR (June 24): The FBM KLCI drifted lower in early trade Wednesday against the backdrop of tentative regional markets, dragged by select index-linked stocks.

At 9.05am, the FBM KLCI shed 3.75 points to 1,503.29.

The early decliners included Petronas Dagangan Bhd, Fraser & Neave Holdings Bhd, Tenaga Nasional Bhd, Grand Hoover Bhd, British American Tobacco (M) Bhd, Hartalega Holdings Bhd and AMM Holdings Bhd.

Bloomberg said Asian stocks drifted at the open on Wednesday, while U.S. futures were flat and the dollar slipped as investors monitor a continuing acceleration in coronavirus cases across the American sun belt.

Japan’s Topix opened lower, while Korean shares advanced and Australian ones saw a modest rise. The dollar headed for a third straight day of declines. Treasuries were flat. New Zealand’s dollar may be in focus when the central bank decides on policy later Wednesday. On Tuesday, the S&P 500 closed well off its earlier 1.2% gain on reports that a surge in cases in several hotspots in the South and Southwest of the U.S. threatened to derail plans to ramp up reopenings. Still, the Nasdaq Composite hit another all-time high, it said.

Rakuten Trade Sdn Bhd in its daily market report said Wall Street was up again citing economic recovery and potential additional stimulus.

It said the Dow Jones Industrial Average gained 130 points to almost the 26,160 mark whilst the Nasdaq continue with its record-breaking run.

“As for the regional equities, we reckon prevailing consolidation to continue today having closed firmer yesterday.

“On the local front, we expect the FBM KLCI to possibly test the 1,515 level having rebounded from below 1,500 mark yesterday due to some late buying activities,” it said.