KUALA LUMPUR (Feb 5): The FBM KLCI cut losses to settle almost flat as investors bargain hunted for beaten-down stocks following an overnight descend in crude oil prices.

At 12.30pm, the KLCI fell 0.78 point or 0.04% to 1,802.24 points. The KLCI had earlier reached an intraday low of 1,796.41 on profit taking after yesterday's 22.35-point or 1.25% rise.

Today, JF Apex Securities said profit taking in Malaysian shares was expected after yesterday’s rally.

“Asian equities are seen lower today after the European Central Bank (ECB) expressed pessimism about Greece's bailout program and as oil prices resumed their descent overnight.

“We expect the KLCI to hover and consolidate below the resistance of 1,830 points with potential profit taking after yesterday's rally,” JF Apex wrote in a note today.

Bursa Malaysia saw some 848.3 million shares worth RM851.2 million traded. There were 385 decliners versus 255 gainers while 287 counters were unchanged.

British American Tobacco (M) Bhd was the top gainer while Riverview Rubber Estates Bhd led decliners. The most-active counter was Globaltec Formation Bhd.

Reuters reported that oil markets remained highly volatile, with U.S. crude losing 9% on Wednesday in one of its biggest routs ever as record high oil inventories in the US cut short a four-day rally.

Lower oil price led to a weaker ringgit as crude oil constitutes a major portion of the Malaysian economy.

The ringgit weakened against the US dollar at 3.5630 and traded at 2.6430 against the Singapore dollar.

Asian stock markets declined. Japan’s Nikkei was down 0.8% while South Korea’s Kospi fell 0.65%.

Reuters reported that Asian stocks and the euro handed back gains and slipped on Thursday after the ECB took a hard line stance on Greece's debt and dampened optimism towards a resolution to the saga.