KUALA LUMPUR: The FBM KLCI,which traded mostly in negative territory till midday today, exhibited a steady climb to register marginal gains at the lunch break amid losses across major Asian indices following a poorer performance across US equities.

Analysts say Malaysia's FBM KLCI needs to see a higher trading volume to sustain its performance.

"A further significant improvement in daily trading volume, preferably closer to the one-billion-shares mark, is essential for a more sustained recovery from the present consolidation," TA Securities Holdings Bhd wrote in a note to clients today.

The FBM KLCI rose 0.16 to 1,266.60 at 12.30pm. Across the bourse, a total of 345.3 million shares worth RM470.8 million changed hands, resulting in 275 gainers versus 257 losers.          

Top gainer Nestle (M) Bhd added 58 sen to RM33.98, while top decliner MNRB Holdings Bhd fell 15 sen to RM2.75. Most active was Compugates Holdings Bhd which traded unchanged with some 40 million shares done.

According to TA, the FBM KLCI exhibited renewed strength to challenge its next immediate upside hurdle at the 1,272- and 1,276-point levels. Immediate support levels for the benchmark were revised upwards to 1,262, 1,260, and 1,256.

Major regional stock indices fell at noon. Japan's Nikkei 225 declined 0.62% to 10,335.98, Hong Kong's Hang Seng dropped 0.16% to 20,345.00 while Australia's S&P/ASX 200 was down 0.26% to 4,705.20.

In the US, all three major equity gauges fell in overnight trade, dragged down by shares of commodity related firms, possibly  in anticipation that a less-than-expected increase in inflation there would not prompt policymakers to raise  interest rates for now. Investors usually purchase commodities as a hedge against rising inflation.

The Dow Jones Industrial Average fell 0.18 % to 10,383.38, the Nasdaq declined 0.08% to 2,242.03 while the S&P 500 was down 0.10% to 1,108.01.

The ringgit was firmer at RM3.3992 versus a weakening US dollar. The stronger ringgit could also be due to anticipation that Malaysian policymakers will raise interest rates soon as the country exhibits better economic numbers in the coming months.