KUALA LUMPUR: The FBM KLCI drifted slightly lower in the early session as traders cast a wary eye on inflation risks amid growing hostilities in the Middle East and rising oil prices.

Brent crude futures for November delivery edged closer to US$100 a barrel, its highest in over six weeks, following US attacks on Iranian oil vessels.

Malaysia's benchmark stock index traded 1.23 points lower at 1,713.17. Over the morning session, it moved within a seven-point range of 1,711.17 and 1,718.52.

As foreign funds flowed outwards and the blue chips were subdued, some buying interest trickled into the small caps, leading to positive market breadth of 487 advancing issues to 464 declining issues. 

Trading volume was 2.16 billion shares changing hands for RM1.57bil.

Financial services lagged the other sectors, sliding 0.48%, while utilities jumped 0.73% and energy stocks rose 0.13%.

Among the blue chips, Nestle shed 86 sen to RM93.30, CIMB fell nine sen to RM7.89 and SD Guthrie dropped nine sen to RM6.11.

Gainers included MISC up 13 sen to RM7.84, Gamuda rising 13 sen to RM4.93 and PETRONAS Dagangan gaining 38 sen to RM20.30.

Of actives, Zetrix AI lost 2.5 sen to 28 sen, Zentech was flat at 0.5 sne and NexG gained 2.5 sen to 29.5 sen.

In regional markets, Japan's Nikkei was a fraction lower at 65,221. South Korea's Kospi rose 1.31% to 7,045.

In China, the Shanghai Composite index gained 0.24% to 3,949, the CSI 300 rose 0.12% to 4,564 and Hong Kong's Hang Seng was flat at 25,316.

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