KUALA LUMPUR (Oct 10): The FBM KLCI fell more than 30 points, possibly due to anticipation the government will devise new taxes to pare debt and reform crucial sectors in the country.

At 3:33pm, the KLCI fell 31.17 points or 1.76% to 1,742.98. 

"At the various tracks in the conference (Malaysia: A New Dawn Investors' Conference), we gathered that the ministries are working on potential reforms for the aviation, agriculture, power and property sectors. The potential changes could lead to short-term uncertainty for some listed companies in the near-term, but could be positive for the market in the medium- to long-term if the reforms yield results through higher growth for the country," CIMB Research analyst Ivy Ng Lee Fang wrote in a note today.

"We are positive on the government’s push to reform the country in the medium- to long term. However, we maintain our view that the stock market could be volatile in the months ahead, due to short-term domestic policy uncertainty and external risk factors. We maintain our KLCI target of 1,684 points (15.7x P/E)," Ng said.