KUALA LUMPUR (Jan 23): The FBM KLCI plunged when markets opened today after crude oil prices and US equities dropped substantially overnight on Tuesday amid global economic growth concerns. 

Analysts said Malaysia's corporate financial reporting season may also dictate stock market sentiment. At Bursa Malaysia today, the KLCI opened 10.89 points down at 1,691.23 at 9am. At 9:05am, the KLCI fell 17.60 points to 1,684.52.

"In view of the economic concerns globally and tracking the negative sentiment on Wall Street overnight, we opine that the FBM KLCI may take a pause over the near term as traders could reduce their exposure ahead of the long Chinese New Year break and reporting season month," Hong Leong Investment Bank Bhd wrote in a note today.

Overnight in US share markets, Reuters reported that the Dow Jones Industrial Average fell 301.87 points or 1.22 percent to 24,404.48, the S&P 500 lost 37.81 points or 1.42 percent to 2,632.9 and the Nasdaq Composite dropped 136.87 points or 1.91 percent to 7,020.36. It was reported that US stocks ended lower on Tuesday, snapping a four-session rally, as a gloomy global economic growth outlook, trade concerns and disappointing company forecasts dampened sentiment. 

On crude oil markets, it was reported that Brent oil futures settled down US$1.24 or 2 percent at US$61.50 a barrel while US West Texas Intermediate crude futures fell US$1.23 or 1.9 percent to US$52.57. It was reported that oil prices dropped about 2 percent on Tuesday over concerns the world's stumbling economy could pinch fuel demand as US shale fields surge and cuts by Russia come in below expectations.