KUALA LUMPUR (Feb 6): Bursa Malaysia Bhd shares fell as much as 2.8% as the benchmark FBM KLCI index saw heavy selling, in line with the general sell-off in regional markets.

At 4pm, Bursa Malaysia was down 16 sen or 1.47% at RM10.72, with a total of 148,600 shares exchanged, after earlier declining as much as 30 sen or 2.76% to RM10.58.

Several KLCI component counters saw substantial decline, including banking stocks CIMB Group Holdings Bhd, Public Bank Bhd, Malayan Banking Bhd and Hong Leong Bank Bhd, as well as other counters like IHH Healthcare Bhd, Axiata Group Bhd and Petronas Gas Bhd.

The fall in Bursa Malaysia's share price was despite Prime Minister Datuk Seri Najib Razak's announcement of a stock market trading link between the local bourse and Singapore Exchange (SGX) along with other measures to deepen the capital market.

SGX and Bursa Malaysia will establish a network to enable cross-trading clearing and settlement of traded stocks, which will be jointly supervised by both bourses.

Other measures announced included the exemption of stamp duty on shares of mid- and small-cap companies traded on Bursa Malaysia.

RHB Investment Bank Bhd analyst Leng Seng Choon viewed the recent announcements as positive for Bursa Malaysia and had upgraded the counter to buy from neutral, with a target price of RM12.20.

"Despite uncertainties from the recent decline in global markets, we believe Bursa Malaysia should benefit from increased trading volumes with the upcoming general election, as well as the initiatives mentioned above.

"In addition, Bursa Malaysia has a robust balance sheet with a net cash position, and the stock offers an attractive 2017 dividend yield of close to 5%," said Leng.