KUALA LUMPUR (April 2): The FBM KLCI extended its loss in early trade Thursday, tracking the overnight slump at Wall Street on fears of a deep global recession.

At 9,05am, the FBM KLCI fell 2.76 points to 1,319.90.

The early decliners included Carlsberg Brewery Malaysia Bhd, Allianz Malaysia Bhd, Kuala Lumpur Kepong Bhd, Ajinomoto (M) Bhd, Scientex Bhd, MISC Bhd, Batu Kawan Bhd, Hong Leong Bank Bhd, Tenaga Nasional Bhd and Time Dotcom Bhd.

Reuters said Asian equity markets and crude oil looked set for further losses on Thursday, after a dire warning about the U.S. coronavirus death toll and mounting evidence the fast-spreading disease has sent the world economy hurtling into a deep recession.

Stocks on Wall Street fell more than 4% as the warning of a potentially massive death toll and growing evidence of a deep economic downturn reinforced expectations that corporate results will suffer in the first quarter and then turn sharply lower, it said.

JF Apex Securities Research said US markets tumbled overnight as the coronavirus continues to spread and death toll is expected to rise.

It said that earlier, European stocks declined as the coronavirus outbreak continues to drag the market and weighed on investor sentiment.

“On the local market, the FBM KLCI dropped 28.23 points to 1322.66 points.

“Following the bearish performances in the US and Europe, the FBM KLCI could retrace towards its support of 1280 points,” it said.

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