KLCI slumps 1% to below 1,500 level as regional markets fall in line with overnight Wall St tumble

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KUALA LUMPUR (Sept 4): The FBM KLCI slumped 1% in early trade to below the 1,500-point level, tracking regional markets and the overnight tumble on Wall Street.

At 9.05am, the benchmark index was 15.60 points lower at 1,499.80.

The top losers included Malaysian Pacific Industries Bhd, ViTrox Corp Bhd, Hartalega Holdings Bhd, Kossan Rubber Industries Bhd, Supermax Corp Bhd, Carlsberg Brewery Malaysia Bhd and Petronas Gas Bhd.

Bloomberg said global stocks were ending the week with an unwinding of recent strong gains, with the rotation away from high-flying tech stocks gaining steam as investors questioned the sustainability of lofty valuations.

Rakuten Trade Sdn Bhd in its daily market report said US markets saw a sell-off led by tech stocks which had seen a series of record-high closes.

It said Dow Jones lost 800 points or 2.78% to 28,292, while Nasdaq fell 4.96% and S&P 500 drop 3.51%, which saw heavy profit taking on tech stocks.

“Regional markets are likely to feel the heat from yesterday's pullback.

“We reckon the sell-off in US markets was healthy correction after many record-breaking highs.

“On the local front, we expect sentiment to be cautious. Nonetheless, we advocate buy on weakness with 1,500 as the support level for the KLCI,” it said.