KUALA LUMPUR (May 7): The FBM KLCI fell sharply minutes before closing to settle 15.87 points or 0.9% lower as a global sell-off in government bonds hit share market sentiment. The ringgit weakened.

Reuters reported that world financial markets were unsettled again on Thursday as a week-long sell-off in benchmark government bonds, stocks and the dollar, and a race up in oil prices, was compounded by UK election uncertainty.

In Malaysia, the KLCI closed at 1,805.10 points at 5pm as Tenaga Nasional Bhd shares fell after analysts downgraded the stock.

Despite the KLCI's losses, Jupiter Securities Sdn Bhd chief market strategist Benny Lee said the index was holding well versus other Asian markets.

“The KLCI is still holding pretty well, despite the decline in regional markets. The main factor supporting this is crude oil prices,” said Lee.

The KLCI's 0.9% decline compares with Japan’s Nikkei 225's 1.23% fall and Hong Kong’s Hang Seng's 1.27% loss.

According to Bloomberg data, Brent crude oil rose to US$68.25 a barrel, while US oil climbed to US$61.11.

Across Bursa Malaysia, the exchange saw 1.56 billion shares worth RM1.97 billion traded. Decliners beat gainers at 437 against 319 while 360 counters were unchanged.

British American Tobacco (M) Bhd led decliners while Tenaga was the sixth-largest decliner. Tenaga fell after Deutsche Bank downgraded the stock to “sell” with a lower target price of RM11.50.

Top gainers included Syarikat Takaful Malaysia Bhd and Apex Healthcare Bhd. The top-active stock was Frontken Corp Bhd.

The ringgit weakened against world currencies. The ringgit was traded at 3.5942 against the US dollar and 2.7019 against the Singapore dollar.

Reuters reported that the ringgit fell with government bond yields higher and as some funds cut long positions in the currency against the euro. Investors were awaiting the result of the central bank's policy meeting later in the day.