KUALA LUMPUR (Aug 3): The FBM KLCI fell 0.94% at the midday break as lenders fell on concerns of upticks in impairments of loans after the end of the automatic moratorium period in September 2020, against mixed regional markets.

At 12.30pm, the FBM KLCI lost 15.09 points to 1,588.66.

The financial services index lost 1.58% or 208.19 points to 12,957.32.

Losers led gainers by 445 to 305, while 653 counters traded unchanged. Trading volume was 6.97 billion shares valued at RM4.66 billion.

The top losers included PPB Group Bhd, Dutch Lady Milk Industries Bhd, Malayan Banking Bhd, Maxis Bhd, Hong Leong Bank Bhd, Hong Leong Financial Group Bhd and Public Bank Bhd,

The actively traded stocks included XOX Bhd, MQ Technology Bhd, Notion Vtec Bhd, LKL International Bhd, Key Alliance Group Bhd, Green Ocean Bhd and JCY International Bhd.

The gainers included Malaysian Pacific Industries Bhd, Careplus Group Bhd, Rubberex Corp Bhd, Comfort Gloves Bhd, Supermax Corp Bhd, Adventa Bhd, Top Glove Corp Bhd, SCGM Bhd, Hartalega Holdings Bhd and Kossan Rubber Industries Bhd.

Reuters said Asian shares and the US dollar made a cautious start to the new month on Monday as US lawmakers struggled to hammer out a new stimulus plan and a global surge of new coronavirus cases showed no sign of abating.

Meanwhile, Philippines and Indonesian stock markets tumbled on Monday after restrictions were extended in the capital cities of both countries as coronavirus cases surged, denting hopes of a quick economic recovery in Southeast Asia's two most populous nations.

Hong Leong IB Research said as the impact of past stimulus measures fades and given some evidence that global recovery has already stalled amid a second wave Covid-19 infections fear coupled with lingering US-China geopolitical conflict, it remains to be seen what will help to keep global stock markets elevated in the coming weeks.

“On the domestic scene, ongoing political tussles in PH and PN and expectations of worsening reported numbers for 2Q20 (both GDP and corporate results) are the risks that we may see an extended consolidation in August.

“Technically, a successful breakout above 1,618 (July 29 high) neckline resistance would spur index higher towards 1,633-1,644 zones whilst a sharp fall below 1,563 would trigger further selldown at 1,510-1,538 territory,” it said.

Meanwhile in a note today, AmInvestment Bank retained its "neutral" stance on the banking sector on concerns of upticks in impairments of loans after the blanket automatic moratorium ends in September 2020.

“Our top picks for the sector remain Maybank (FV: RM8.40/share) and RHB Bank Bhd (FV: RM6.00/share),” it said.