11/09/2012 (The Star) -  Key regional markets were slightly higher at midday on Tuesday while at Bursa Malaysia, the FBM KLCI fell, dragged by Pertronas-linked stocks after the national oil company expected challenging times ahead.

At 12.30pm, the FBM KLCI was down 1.29 points to 1,623.26. Turnover was 419.85 million shares valued at RM667.97mil. Declining stocks beat advancers 395 to 173 while 276 counters were unchanged.

Domestic data were unimpressive, with the latest being the industrial production index (IPI) for July. The IPI rose 1.4% on-year, which was below market expectations of a 3.5% growth.

Trade data released last Friday also showed weakening exports while Petronas recorded a weaker financial performance in its second quarter for the financial year 2012.

Key regional markets were only slightly higher ahead of the FOMC meeting on Wednesday-Thursday.

Bloomberg reported China's industrial output grew in August at the slowest rate since 2009 and imports dropped for the first time in seven months, while Japan's economy expanded in the second quarter at half the pace initially estimated.

Employers in the US added fewer jobs than economists forecast last month, adding pressure on the Federal Reserve to act to spur growth when they meet Sept 12-13.

Among the key regional markets, Japan's Nikkei 225 fell 0.21% to 8,852.85 and South Korea's Kospi slipped 0.06% to 1,928.33.

However, Hong Kong's Hang Seng Index rose 0.09% to 19,819.86; Shanghai's Composite Index added 0.37% to 2,135.56; Taiwan's Taiex added 0.69% to 7,476.04 and Singapore's Straits Times Index flat at 3,012.42.

US light crude oil fell 12 cents to US$96.30 but Brent rose 31 cents to US$114.56 and spot gold gained US$1.97 to US$1,737.82.

The ringgit was firmer against the US dollar at 3.1038.

Crude palm oil for third-month futures fell RM9 to RM2,918, the lowest since Aug 15. It has been falling after hitting RM3,073 on Sept 3.

August palm oil stocks rose 5.8% to 2,115,214 tonnes from a revised 1,999,066 tonnes in July, industry regulator Malaysian Palm Oil Board said. August's rise exceeded market expectations that stocks in the world's No.2 palm oil producer likely rose 4.5% to 2.09 million tonnes, Reuters said.

KL Kepong fell 20 sen to RM22.19 and PPB 12 sen to RM12.88 while IOI shed five sen to RM4.99. KLK and PPB's decline dragged the KLCI down 0.55 of a point.

Petronas Dagangan lost 32 sen to RM21.40, Petronas Chemicals 14 sen to RM6.35 and Petronas Gas eight sen lower at RM18.62. Their losses erased 1.89 points from the KLCI.

BAT was the top loser, down RM1.60 to RM62.88, Nestle slipped 20 sen to RM62.88 while cement maker Tasek lost 20 sen also to RM11.

Hubline was the most active with 20.41 million shares done, doen 0.5 sen to six sen.

Maybank rose 15 sen to RM9.18, pushing the KLCI up 2.67 points. Maxis added six sen to RM6.90 while among the telco, TM rose five sen to RM6.05, Axiata four sen to RM6.05 and DiGi three sen to RM4.84.

Aeon Credit was the top gainer, climbing 28 sen to RM13.20 after swinging between gains and losses ahead of its shares going ex on Tuesday.

I-Bhd jumped 17 sen to RM1.19 on more upside seen for the company while Shangri-La added 10 sen to RM4.30.