KUALA LUMPUR: Negative news continued to weigh on investors’ confidence as the FBM KLCI continued to slide below the lowest level since December 2016.

Maybank, Hong Leong Bank and Public Bank fell on Malaysia’s potential disqualification from the World Government Bond Index (WGBI). Maybank was also impacted by its exposure to Singapore’s Hyflux.

At 9.12am, the KLCI was down 5.72 points or 0.35% to 1,615.18. Turnover was 220.14 million shares valued at RM90.64mil. There were 111 gainers, 165 losers and 198 counters unchanged.

Kenanga Research said while overall technical outlook for the KLCI still appears bearish, it believes that it may not persist as the stochastic indicator has been in the oversold zone for quite some time. 

“Should a rebound happen, we look towards 1,660 (R1) and 1,700 (R2) as resistance levels. Conversely, downside supports can be found at 1,615 (S1) and 1,600 (S2),” it said.

Meanwhile, Asian shares were subdued after a negative performance on Wall Street, with caution ahead of business surveys in Europe and Japan, and the Good Friday and Easter holidays keeping investors on the sidelines, Reuters reported.

MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.08%, trading just below its highest since late July 2018 brushed on Wednesday.

Australian shares advanced a quarter of a percent while Japan's Nikkei was a shade lower.

At Bursa, Maybank fell 20 sen to RM8.80, Hong Leong Bank 10 sen to RM19.90 and Public Bank eight sen to RM22.52. RHB Bank rose eight sen to RM5.87.

PPB Group lost 20 sen to RM18.58 while Affin Hwang Capital research has initiated coverage with a hold rating and a target price of RM19.50. 

However, KL Kepong added 16 sen to RM24.86 and Sime Plantation edged up four sen to RM5.15.

Petronas Dagangan lost 14 sen to RM24.80, Petronas Gas 10 sen to RM17.64 while Lafarge was down 10 sen to RM2.22.

Press Metal gave up nine sen to RM4.42, MPI seven sen to RM9.73 and Ann Joo six sen to RM1.61.

Nestle was the top gainer, up 70 sen to RM146.80.

Click here for StarBiz top stories on the WGBI exclusion worries and Maybank shares impacted by Singapore's PUB takeover of Tuasspring plant from Hyflux.