KUALA LUMPUR (Feb 3): The FBM KLCI was down 0.3% at the midday break, as investor sentiment remained on tenterhooks as fears of the novel coronavirus contagion rattled global markets.

At 12.30pm, the FBM KLCI dipped 4.65 points to 1,526.41. The index had earlier slumped to a low of 1,517.61.

Market breadth was negative with 635 losers and 107 gainers, while 490 counters traded unchanged. Volume was 2.52 billion shares valued at RM1.40 billion.

The losers included Nestle (M) Bhd, Dutch Lady Milk Industries Bhd, KESM Industries Bhd, British American Tobacco (M) Bhd, Fraser & Neave Holdings Bhd, Panasonic Manufacturing Malaysia Bhd, Heineken Malaysia Bhd, Chin Teck Plantations Bhd, ViTrox Corp Bhd and DKSH Holdings (M) Bhd.

The actives included Bumi Armada Bhd, Sapura Energy Bhd, KNM Group Bhd, mTouche Technology Bhd, Alam Maritim Resources Bhd, Priceworth International Bhd and AirAsia Group Bhd.

The gainers included Kluang Rubber Company (Malaya) Bhd, Dufu Technology Corp Bhd, MISC Bhd, Malayan Cement Bhd, Hume Industries Bhd, Maxis Bhd, Public Bank Bhd and Digi.Com Bhd.

Reuters said Asian shares stumbled on Monday, oil skidded and commodities on Chinese exchanges plunged on their first trading day after a long break on fears the coronavirus epidemic will hit demand in the world's second-largest economy.

Aiming to head off any panic, the Chinese government took a range of steps to shore up an economy hit by travel curbs and business shut-downs because of the epidemic, including cutting its key interest rate, it said.

Affin Hwang Capital Research said the FBM KLCI dropped 14.53 points or 0.9%, to close at 1,531.06 on Friday (Jan 31).

The research house said the index managed to breach below the 1,550 support level last week, which indicates that selling pressure remains strong.

"With the shorter-period key moving averages trading below the longer-period ones, it tells us that the downward momentum is gaining strength. This is also backed by the current price action which indicates that the short-term downtrend still remains intact as price continues to register lower highs and lower lows.

"Overall, taking into account the bearish factors portrayed from the charts, it is fair for investors to anticipate the index to drift lower, testing the next support level around 1,500 in the near term. Note that any rebound should be perceived as temporary. A 600-point plunge in Dow Jones is also likely to add the local market's bearish tone.

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