KUALA LUMPUR (Sept 26): The FBM KLCI skidded 0.38% as market sentiment turned sharply negative on reignited tensions in the Korean peninsula that dragged regional markets lower.

At 12.30pm, the FBM KLCI lost 6.77 points to 1,762.37. The index had earlier fallen to its intra-morning low of 1,761.21, its lowest level in almost four weeks.

Losers beat gainers by 446 to 158, while 498 counters traded unchanged. Volume was 2.12 billion shares, valued at RM915.16 million.

The top losers included Malaysian Pacific Industries Bhd, Globetronics Technology Bhd, KESM Industries Bhd, Time Dotcom Bhd, Vitrox Corporation Bhd, Petronas Gas Bhd, Inari Amertron Bhd, Hengyuan Refining Company Bhd, AirAsia Bhd and Tasco Bhd.

The actives included Hibiscus Petroleum Bhd, UMW Oil & Gas Corp Bhd, Trive Property Group Bhd, MQ Technology Bhd, Sumatec Resources Bhd, Hubline Bhd, KNM Group Bhd, Scomi Group Bhd and Sino Hua-An International Bhd.

The gainers included British American Tobacco (M) Bhd, Panasonic Manufacturing Malaysia Bhd, Hartalega Holdings Bhd, Scientex Bhd, Syarikat Takaful Malaysia Bhd, Bison Consolidated Bhd, Hong Leon Industries Bhd, Sapura Energy Bhd and Carimin Petroleum Bhd.

Most Southeast Asian stock markets fell in line with broader Asia on Tuesday, as investors sought shelter in safe-haven assets, with tensions flaring up again on the Korean peninsula, according to Reuters.

North Korea's foreign minister said on Monday that the nation counted U.S. President Donald Trump's tweet over the weekend as a declaration of war on the country, and that it could retaliate with measures, including shooting down U.S. bombers — even if they were not in its air space, Reuters said.

Kenanga IB Research said most Asian bourses tumbled after US Federal Reserve (Fed) announced it will shrink its balance sheet by US$4.5 triilion (RM18.9 trillion) through quantitative tightening, reverse of quantitative easing (QE).

It said the quantitative tightening activity is scheduled to start in October 2017 and poses greatest risk to emerging markets, which might trigger sell-off in the equity markets, due to outflow of foreign funds.

“The FBM KLCI closed marginally lower by 1.90 points or 0.11% at 1,769.14. Similarly, broader market sentiment was negative with 626 losers against 259 winners, while 349 shares traded unchanged.

“From a technical view, the key index vacillated between gains and losses throughout the day, although spending the day mostly in the red. The movement also led to MACD line to cross deeper below the Signal-line, signalling continued momentum loss.

“However, now that the index is testing cluster of support level, we would not rule out the emergence of bargain hunting activities at these levels.

“In contrast, a more decisive break down below the 1,770 (S1) level will lead to derating of the overall technical picture towards 1,760 (S2),” the research house said.