KUALA LUMPUR (May 30): The FBM KLCI lost 2.6% at midday break today, as stocks on Bursa Malaysia were battered in line with regional sell-off.

At 12.30pm, the FBM KLCI fell 44.86 points to 1,730.98, a five-month low.

Market breadth was negative with 640 losers and 69 gainers, while 557 counters traded unchanged. Volume was 1.77 billion shares valued at RM1.79 billion.

The top losers included Panasonic Manufacturing Malaysia Bhd, Muda Holdings Bhd, Tenaga Nasional Bhd, Hong Leong Bank Bhd, Hengyuan Refining Company Bhd, MISC Bhd, Gamuda Bhd, Malayan Banking Bhd, Nestle (M) Bhd, Petronas Gas Bhd and Public Bank Bhd.

The actives included Sapura Energy Bhd, My E.G. Services Bhd, YTL Corp Bhd, Hibiscus Petroleum Bhd, Maybank, AirAsia Group Bhd, XOX Bhd and AirAsia X Bhd.

The gainers included British American Tobacco (M) Bhd, Far East Holdings Bhd, Top Glove Corp Bhd and Hang Seng Index-linked put warrants.

Asian stocks extended a global sell-off on Wednesday, as Italy's political crisis rippled across financial markets, toppling the euro to a 10-month low, pushing up Italian borrowing costs and sending investors rushing to safe-haven assets such as U.S. Treasuries, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan tumbled 1.5%, while Japan's Nikkei average sold off as much 1.9% to hit a six-week low. 

Chinese shares also headed south, with the Shanghai Composite index down 1.8%, South Korea's KOSPI and Australia's S&P/ASX 200 slipped 2.0% and 0.6% respectively, Reuters said.

Affin Hwang Capital Research said global markets were anticipated to open softer, mainly due to concerns on Italy’s political turmoil.

“Investors advised to practice caution, especially in the European market, as potential unwinding of Italian bonds arise.

“In the local arena, the FBM KLCI erased gains made on Friday, closing lower at 1775.84 points.

“Negative outlook remains for the local index, as the new government is looking into numerous projects with latest multi-billion dollar high-speed rail KL-Singapore being scraped.

“The FBMKLCI anticipated to drift lower today and to test 1700 support level in the near future, as short-term outlook continue to be bearish,”the research house said.