KUALA LUMPUR (July 23): The FBM KLCI drifted lower in early trade Thursday,in line with the modest start as the US-China consulate overtures weighed on investor sentiment.

At 9.05am, the bellwether index dipped 0.86 points to 1,586.12.

The early decliners included Petronas Dagangan Bhd, Public Bank Bhd, PPB Group Bhd, Hong leong Bank Bhd, Ta Ann Holdings Bhd, British American Tobacco (M) Bhd, Hartalega Holdings Bhd and Cheetah Holdings Bhd.

Bloomberg said Asia stocks opened modestly lower on Thursday as investors weighed doubts on the timing of a new U.S. spending bill and concern about an escalation of tensions with China.

The dollar continued to edge lower, near the weakest since March, it said.

Rakuten Trade Sdn Bhd in its daily market report said Wall Street ended higher on renew hopes of a vaccine for Covid-19.

It said the Dow Jones Industrial Average gained 165 points to finally close above the 27,000 level.

“Nonetheless, we reckon regional markets to be rather mixed today on the back of the escalating tension between China and the US.

“On the domestic front, the FBM KLCI which saw some late selling activities broke the 1,590 support level yesterday thus we believe the index to possibly test the immediate support at 1,580 before rebounding to the 1,590 mark as the regional markets take heed of the latest stimulus package in the US,” it said.