KUALA LUMPUR: The FBM KLCI remained deep in the red by the end of the morning session even as key regional markets retraced earlier losses.
The local benchmark index was down 16.38 points to 1,684.74 at midday break with 459 declining stocks versus 193 gainers and 341 unchanged. Turnover on the market was 1.1 billion shares valued at RM799.14mil.
The decline put a crimp on the technical outlook of the index, which had improved in the previous session as it rose above the 1,700 psychological level. At current levels, it is hovering above the 50-day simple moving average, which serves as a tentative support level.
Asian markets slid in the early morning session following a Financial Times report that Washington had cancelled preparatory tade talks with China ahead of their scheduled meeting on Jan 30 and 31.
The losses were erased over the course of the morning with the Shanghai Composite Index, Hong Kong's Hang Seng Index and Japan's Nikkei Index marginally higher over their previous close.
On the home front, Public Bank led the decline with a 42 sen drop to RM24.76, erasing yesterday's 38 sen climb.
CIMB was the other banking heavyweight to fall, losing eight sen to RM5.69. Meanwhile Petronas Chemicals extended losses by 12 sen to RM8.40 while Genting dropped 30 sen to RM6.63 and Press Metal
slid 40 sen to RM4.15.
Topping the active counters list were Bumi Armada, which gained 0.5 sen to 22 sen on the back of nearly 120 million shares traded, Sapura Energy trading unchanged at 28 sen and VS Industry losing 0.5 sen at 78 sen.
Oil prices managed to hold firm on Wednesday on the hope that increased Chinese stimulus will keep the economy on track. US crude shed two cents to US52.99 a barrel and Brent crude was unchanged at US$61.50 a barrel.
On the forex market, the ringgit was little changed against the greenback at 4.1333. It shed 0.5% against the pound sterling at 5.3532 and 0.15% against the Singapore dollar at 3.0412.
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