KUALA LUMPUR (Feb 28): The FBM KLCI lost 1.47% at the midday break after local investors were jolted following the US market falling into correction zone on sliding more than 4% overnight, while Japan’s Nikkei 225 tumbled 3% this morning.

The negative sentiment at the local market was further exacerbated by the political impasse following the sudden resignation of Prime Minister Tun Dr Mahathir Mohamad and the subsequent question as to who will hold office next.

At 12.30pm, the FBM KLCI was down 22.16 points to 1,483.43. The index has lost some 47.77 points week-on-week.

Market breadth was negative as losers thumped gainers by 802 to 30, while 462 counters traded unchanged. Volume was 2.93 billion shares valued at RM1.83 billion.

The top losers included Carlsberg Brewery Malaysia Bhd, Nestle (M) Bhd, Heineken Malaysia Bhd, Dutch Lady Milk Industries Bhd, Panasonic Manufacturing Malaysia Bhd, British American Tobacco (M) Bhd, KESM Industries Bhd, Fraser & Neave Holdings Bhd, Ajinomoto (M) Bhd and Allianz Malaysia Bhd.

The actives included Sapura Energy Bhd, XOX Bhd, Bumi Armada Bhd, Avillion Bhd, KNM Group Bhd and Powerwell Holdings Bhd.

The gainers included UMW Holdings Bhd, Menang Corp Bhd, Petronas Dagangan Bhd, Paragon Globe Bhd, Ayer Holdings Bhd and Malaysian Genomics Resource Centre Bhd.

Reuters said world share markets were headed for the worst week since the depths of the 2008 financial crisis as investors ditched risky assets on fears the coronavirus would become a pandemic and trigger a global recession.

Hopes that the epidemic that started in China would be over in a few months and economic activity would return to normal have been shattered, as new infections reported around the world now surpass those in China, it said.

Affin Hwang Capital Research said the FBM KLCI gained 10.4 points or 0.7%, to close at 1,505.59 on Thursday.

It said despite the brief technical rebound currently seen in the markets, downtrend remains intact. Downward movement in the index is firmly in progress with growing bearish sentiments.

“Globally, major markets, particularly the US market plunged in overnight trading session, which may drag our local market even further lower. Hence, any rebound is perceived as short-lived.

“Overall, anticipate the index to head to next downward target, calculated to be in the range of 1,400-1,375.

“Anticipate the index to trade with downward bias,” it said.