KUALA LUMPUR (Jan 22): The FBM KLCI settled down 0.8 point or 0.05% at Bursa Malaysia's afternoon break today as a global outbreak of a pneumonia-causing virus, which started in China, dictated world market sentiment.

Reuters reported that China's response to the virus outbreak tempered fears of a global pandemic, although Shanghai shares slipped amid worries about a hit to domestic demand and tourism. "Fears of contagion, particularly as millions travel for Lunar New Year festivities, [have] pushed stocks from record peaks," the newswire said.

At 12:30pm, the KLCI settled down at 1,586.53 after rising to its highest so far today at 1,595.38.

Across Bursa, 1.92 billion shares worth RM1.22 billion were traded. Top decliners included KLCI stocks Malaysia Airports Holdings Bhd and Genting Bhd.

"Underlying market tone should stay weak in the near term, with concerns over a potential repeat of the SARS (severe acute respiratory syndrome) virus outbreak in 2003 from China clouding sentiment," TA Securities Holdings Bhd wrote in a note today.