KUALA LUMPUR (Aug 10): The FBM KLCI fell 1.25% at mid-morning and extended its downtrend as sentiment stayed bearish against the backdrop of defensive regional markets.

At 10am, the FBM KLCI slumped 20.88 points to 1,661.77.

The top losers included British American Tobacco (M) Bhd, Nestle (M) Bhd, Fraser & Neave Holdings Bhd, Top Glove Corporation Bhd, Malaysian Pacific Industries Bhd, Cahya Mata Sarawak Bhd, Telekom Malaysia Bhd, Petronas Chemicals Group Bhd, Latitude Tree Holdings Bdh, Hong Leong Bank Bhd, LPI Capital Bhd, Malayan Banking Bhd and Batu Kawan Bhd.

The actives included RGB International Bhd, Frontken Corporation Bhd, APFT Bhd, The Media Shoppe Bhd, Tiger Synergy Bhd and IFCA MSC Bhd.

The top gainers included Far East Corporation Bhd, Uzma Bhd, SHL Consolidated Bhd and Puncak Niaga Holdings Bhd.

Asian shares were on the defensive on Monday after new indications of a slowdown in the Chinese economy strained the nerves of markets already unsettled by the prospect of a US interest rate hike in September, according to Reuters.

Japan's Nikkei fell 0.4% and South Korean shares dropped 0.3%. MSCI's broadest index of Asia-Pacific shares outside Japan stood near its 1½-year low hit last month and stood flat, it said,

BIMB Securities Research in a market preview today said Hong Kong and China ended sharply higher last Friday, weighing the prospects of consistent government support for the market.

It said that back home, the FBM KLCI fell 11.99 points or 0.71% to 1,682.65, triggered by foreign selling, mainly on telco and gaming stocks.

“Trading participation saw net selling by foreign institutions while local institutions and local retail were net sellers.

“Over the week, the local market experienced total outflow of over RM480 million of funds.

“We reckon the local market to remain weak in the near future with concerns over weakening ringgit, crude oil price and continuous selling by foreign institutions with strong support at 1,650–1,660 level,” it said.