KUALA LUMPUR (Sept 7): The FBM KLCI traded cautiously on Monday, and retreated at the midday break, tracking the fragile sentiment at regional markets.

At 12.30pm, the FBM KLCI shed 0.53 points to 1,515.33. The index had earlier risen to a high of 1,520.89.

Losers overtook gainers by 394 to 341, while 604 counters traded unchanged. Trading volume was 3.77 billion shares valued at RM1.73 billion.

The top losers included Malaysian Pacific Industries Bhd, Supermax Corp Bhd, Teck Guan Perdana Bhd, Unisem (M) Bhd, Tenaga Nasional Bhd, Prestrariang Bhd, Dufu Technology Corp Bhd, ViTrox Corp Bhd and Pharmaniaga Bhd.

The actively traded stocks included JCY International Bhd, Fintec Global Bhd, Ekovest Bhd, Permaju Industries Bhd, Inix Technologies Holdings Bhd and Iskandar Waterfront City Bhd.

The gainers included Nestle (M) Bhd, Batu Kawan Bhd, Ipmuda Bhd, Latitude Tree Holdings Bhd, Petronas Gas Bhd, Komarkcorp Bhd, Poh Huat Resources Bhd, KESM Industries Bhd and Dutch Lady Milk Industries Bhd.

Reuters said Asian shares were on the defensive on Monday as investors grappled with sky-high valuations against the backdrop of a global economy in the grip of a deep coronavirus-induced recession while oil prices dropped sharply.

Chinese stocks started lower while shares of Hong Kong-listed Semiconductor Manufacturing International Corp (SMIC) plunged to the lowest since June 16 on fears the firm could be added to a US trade blacklist, it said.

Hong Leong IB Research said ahead of the monetary policy committee meeting on Sept 10 (adding that economists are split over whether a 0.25% cut is warranted), the KLCI is expected to extend its consolidation mode as volatility remains elevated amid the domestic political uncertainty (ahead of the Sept 26 Sabah state election), the resurgence of Covid-19 cases in global hotspots, escalating US-China geopolitical tension, Wall St’s swings amplified by worries of a Covid-19 resurgence in the fall and winter (although accelerated vaccine development timelines may cushion sharp correction), the stalemate in Congress over additional pandemic aid and heightened political uncertainty ahead of the US presidential election on Nov 3.

“Key supports are situated at 1,508-1,498-1,480 whilst resistances are pegged at 1,542-1,556-1,568 levels,” it said.