FBM KLCI down 1.54% as Wall Street tumble hits world markets

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KUALA LUMPUR (Oct 11): The FBM KLCI dropped 26.69 points or 1.54% today to end at 1,708.49 in tandem with Asian shares on what appeared to be a knee-jerk reaction to US stocks' overnight tumble.  

At Bursa Malaysia today, the five KLCI stocks leading the fall of the KLCI, in percentage terms, were Genting Malaysia Bhd, IHH Healthcare Bhd, Digi.Com Bhd, CIMB Group Holdings Bhd and Petronas Gas Bhd.

Across Bursa Malaysia, 3.1 billion shares worth RM3.7 billion were traded. Top decliners included United Plantations Bhd, Nestlé (M) Bhd and Petronas Gas.

Top gainers included Gamuda Bhd, Top Glove Corp Bhd, and Axiata Group Bhd.

Across Asia, Reuters reported that share markets in Asia plunged to a 19-month low on Thursday after Wall Street's worst losses in eight months led to broader risk aversion, a rise in market volatility gauges and concerns over overvalued stock markets in an environment of rapidly rising dollar yields. MSCI's broadest index of Asia-Pacific shares outside Japan was off 3.8 percent around 0500 GMT, and earlier touched its lowest level since March 2017.

It was reported that US stocks tumbled overnight on Wednesday, with the S&P 500 and the Dow Jones Industrial Average marking their biggest daily declines since Feb 8, and technology stocks were at the center of the carnage as rising US Treasury yields sent investors fleeing from risky assets. US long-dated Treasury yields rose again in extension of a trend over the last few weeks fuelled by solid US economic data that reinforced expectations of multiple interest rate hikes over the next 12 months.

In Malaysia today, Malacca Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com: “Today it (the drop in KLCI) is more of the Wall Street thing. The Wall Street valuation is very high and there are some concerns on the trade war and interest rate but I think that’s the excuse they needed for the Dow Jones to correct and consolidate a bit."

Across Asia today, Japan's Nikkei 225 fell 3.89% while South Korea's Kospi lost 4.44%. In China, Hong Kong’s Hang Seng dropped 3.54% while the Shanghai Stock Exchange Composite declined 5.22%

Overnight in the US, the Dow Jones Industrial Average dropped 3.15%, S&P 500 declined 3.29% while the Nasdaq Composite fell 4.08%.