KUALA LUMPUR (Aug 14): The FBM KLCI fell 1.7% while the ringgit weakened as crude oil prices declined below US$42 (RM171) a barrel.

At 3.29pm, the KLCI was traded at 1,594.37 on losses in oil and gas-related shares like Petronas Dagangan Bhd and SapuraKencana Petroleum Bhd. The ringgit weakened to 4.0760 against the US dollar as crude oil is a major component of the Malaysian economy.

It was reported that crude oil prices fell to six-year lows, following worries of a supply glut as US reported a rising stockpile.

According to Bloomberg, Brent oil fell to US$49.16 a barrel while US crude oil declined to US$41.89.

AllianceDBS Research Sdn Bhd wrote in a note it had initially expected the KLCI to continue its upward trend today after its rebound yesterday.

But today, selling pressure remained, driving the index into further losses, according to AllianceDBS.

The research house told investors to “be prepared for a volatile market in the coming days as market participants, which missed the selling opportunity earlier would be looking to sell into minor rally”.

Bursa Malaysia saw 1.57 billion shares worth RM1.46 billion traded. Decliners outnumbered gainers at 841 against 109.

Leading the decliners was British American Tobacco (M) Bhd while KLCI put warrants were among top gainers and active counters.

Investors buy index-linked put warrants to hedge against broader market losses.