KUALA LUMPUR (Jan 7): The FBM KLCI extended its losses in early trade on Wednesday, in line with regional markets that slipped on collapsing oil prices.
At 9am, the FBM KLCI dipped 1.88 points to 1,714.70.
The top losers included Kuala Lumpur Kepong Bhd, Lafarge Malaysia Bhd, Malayan Banking Bhd, Scientex Bhd, Globetron ics Technology Bhd, Telekom Malaysia Bhd, Malaysia Airports Holdings Bhd and SapuraKencana Petroleum Bhd.
Asian share markets slipped while the euro hit a nine-year trough on Wednesday as collapsing oil prices and worries about the world economy drove skittish investors into the arms of safe havens such as the yen and sovereign debt, according to Reuters.
From Japan to Germany to Australia, government borrowing costs reached all-time lows as oil fell 10 percent in just two days and investors wrestled with the risk of global deflation, it said.
JF Apex Securities Research in a market preview said U.S. stocks recovered a portion of their losses overnight with the S&P 500 back above 2,000 after falling below the level for the first time in nearly four weeks.
It said the price of oil put pressure on European markets with the commodity continuing to be a main driver of global asset markets.
“On the local market, the FBM KLCI slumped 20.04 points to 1716.58 points.
“The selloff in Asian equity markets appears set to continue on Wednesday, after a lower finish on Wall Street overnight and as the hunt for a bottom in oil prices continues.
“Adding to the gloom is simmering concerns that Greece may exit the euro zone. We expect the KLCI to test its support of 1700 points,” it said.