The drop at the KLCI was also in line with losses at regional markets where Hong Kong's Hang Seng Index lost 1.97% to 17,728.08, Japan's Nikkei 225 fell 1.7% to 9,673.88, Taiwan's TAIEX Index fell 1.22% to 6,120.06, Singapore's Straits Times Index fell 0.93% to 2,250.31 and the South Korean Kospi lost 0.40% to 1,385.42. The Shanghai Composite Index, however, gained 0.92% to 2,836.07.

At 12.30pm, the benchmark KLCI index fell 1.22% or 13.02 points to 1,057.88. Turnover was 911.72 million shares valued at RM751.44 million. Losers thumped gainers by 632 to 81, while 138 counters traded unchanged.

Among the major losers, IJM Corp and Maybank fell 20 sen each to RM5.45 and RM5.70, BCHB and Bursa lost 15 sen each to RM9 and RM7, Malaysia Smelting Corp fell 24 sen to RM3.02 and Hume Industries lost 18 sen to RM2.98.

Genting fell 15 sen to RM5.40, MAS fell 10 sen to RM3.08, IOI Corp lost 8 sen to RM4.52, Tenaga fell 5 sen to RM7.65 and KNM Group lost 4 sen to 91 sen.

Meanwhile, Khind and BAT fell 25 sen to 65 sen and RM45 respectively, Berjaya Land fell 16 sen to RM3.60 while Asiafile lost 16 sen to RM5.20.

UEM Land was the most actively traded stock with 37.3 million shares done. The counter fell 12 sen to RM1.71.

UEM Land's shares fell this morning after Damac Properties (M) Sdn Bhd, which is part of Dubai's Damac Group, pulled out of a deal with UEM Land to acquire a piece of land for RM396.44 million in Nusajaya, Iskandar Malaysia.

Other actively traded stocks included KNM, Iris, Tebrau Teguh, Mulpha, Premium, Scomi, Dataprep and Saag.

The top gainer this morning was Kurnia Setia Bhd, adding 24 sen to RM2.65 after the major shareholders revised the offer price.

Shell was up 10 sen to RM10.30, while Iretex, Nagamas, Guinness and Asiatic Development added 5 sen each to RM1, 38 sen, RM5.95 and RM5.65, respectively.

Crude oil fell 4 cents to US$70.99 per barrel as at 12.50pm, while crude palm oil futures for August delivery fell RM16 to RM2,364 per tonne and RM10 to RM2,392 per tonne for July delivery.