KUALA LUMPUR (March 17): The FBM KLCI erased most of its earlier losses at the midday break today, aided by gains at key index-linked blue chips, as US futures advanced against the backdrop of mixed Japan, Hong Kong and China markets.

At 12.30pm, the benchmark FBM KLCI was down 4.8 points to 1,275.83. The index had earlier fallen to a more than ten-year low of 1,211.95.

Market breadth was generally negative as losers led gainers by 585 to 167, while 419 counters traded unchanged. Volume was 2.68 billion shares valued at RM1.95 billion.

The substantial reversal of the losses were due to gains including at index constituents Dialog Group Bhd, AMMB Holdings Bhd, Petronas Dagangan Bhd, Malayan Banking Bhd, CIMB Group Holdings Bhd and Hartalega Holdings Bhd.

The main laggards this morning included Malaysia Airports Holdings Bhd, Hap Seng Consolidated Bhd, Kuala Lumpur Kepong Bhd, Press Metal Aluminium Holdings Bhd and Maxis Bhd.

Reuters said the Philippines closed its financial markets on Tuesday in response to the coronavirus, while other Southeast Asian stock markets fell sharply following one of Wall Street's biggest one-day routs in history.

The shutdown by the Philippines comes after some bourses around the world closed trading floors or paused trade after withering falls in market value, but it is the first blanket market halt and raises the prospect that other exchanges may follow, it said.

Broader Asian markets also declined in a volatile session as headlines about the virus and its global economic impact jolted investor sentiment.

Kenanga IB Research said Asian markets closed lower yesterday as investors expect further weakness in earnings following the US Federal Reserve rate cut which brought benchmark interest rate to zero.

It said back home, the FBM KLCI lost 64.12 points or 4.77% to finish at 1,280.63.

“Chart-wise, the index remains below all the key SMAs.

“Coupled with the bearish MACD signal, we expect the index to remain under pressures ahead.

“On the chart, we have [lowered] our support level to 1,240 (S1) (61.8% retracement level from the trough in 2009 to the peak in 2018) and1, 200 (S2),” it said.