The declaration saw the Dow sink 9.99%, while the S&P 500 declined 9.51% – their steepest daily fall since 1987 – while the Nasdaq was 9.43% lower.
At 9.04am today, the FTSE Bursa Malaysia KLCI (FBM KLCI) lost 73.22 points or 5.15%to 1,346.21, the lowest level since 2010, from 1,419.43 at yesterday’s close.
The FBM KLCI opened 55.67 points weaker at 1,4363.76 at the opening bell.
On the broader market, losers trounced gainers 638 to 31, with 79 counters unchanged, 1,274 untraded and 32 others suspended.
Turnover amounted to 352.93 million shares worth RM134.52 mil.
There was selling pressure in Bursa Malaysia this morning spooked by the sharp downturn on Wall Street overnight.
Market sentiment also turned much weaker as the FBM Small Cap (-6.08%), FBM ACE (-6.27%) and Technology (-6.94%).
“Malaysian stocks succumbed to selling pressure stemmed by the WHO’s move to declare C0vid-19 a global pandemic.
“Following the move, the odds of global recession have also jumped above the 50% level (from 25% level recorded since the start of the year), triggering fears that the contagion effect may be felt across the globe,” it said in a note today.
The research house said after yesterday’s steep falls, a rebound may not be forthcoming as investor sentiment remains frail.
At the same time, foreign selling remains unabated, thus increasing the selling pressure on the index heavyweights, with this trend likely to persist for longer.
“Hence, we think that the 1,415 level is likely to be re-visited and if it gives way, the FBM KLCI could slip to the 1,400 level. We think that any rebound for now will be miniscule, limited to the 1,445-1,455 levels. There is also little reprieve for the broader market shares amid the weak sentiment.
“With the fading interest, the downside pressure on the lower liners will continue to dampen their share price performance over the near term,” it said.
Among the heavyweights, losers were led by Maybank which declined 13 sen to RM8.15, Tenaga erased 86 sen to RM11.56, Public Bank lost 66 sen to RM15.54 and IHH was 12 sen weaker at RM5.44.
Of the actives, Vortex Consolidation fell 2.5 sen to three sen, Sapura Energy slipped 1.5 sen to 9.5 sen and Borneo Oil was half-a-sen weaker at two sen.
On the index board, the FBM Emas Index depreciated 501.21 points to 9,356.86, the FBM Emas Shariah Index decreased 584.16 points to 9,947.92 and the FBM 70 gave up 605.58 points to 11,077.12.
The FBMT 100 Index contracted 503.10 points to 9,239.21 while the FBM Ace was 283.20 points weaker at 4,232.57.
Sector-wise, the Industrial Products and Services Index inched down 8.14 points to 111.30, the Plantation Index slipped 287.94 points to 5,932.61 and the Financial Services Index reduced 494.77 points to 13,080.30. – March `3, 2020, Bernama
