KUALA LUMPUR (Oct 11): The FBM KLCI tumbled 2.63% in early trade this morning and slipped below the crucial 1,700-point threshold , tracking widespread losses at most regional markets.

At 9.05am, the FBM KLCI lost 44.51 points to 1,690.67.

The top losers included Nestle (M) Bhd, Kuala Lumpur Kepong Bhd, British American Tobacco (M) Bhd, Panasonic Manufacturing Malaysia Bhd, United Plantations Bhd, Petron Malaysia Refining & Marketing Bhd, Tenaga Nasional Bhd, Hong Leong Bank Bhd, Malaysian Pacific Industries Bhd and Dutch Milk Industries Bhd.

Asian share markets sank on Thursday after Wall Street suffered its worst drubbing in eight months, a conflagration of wealth that could threaten business confidence and investment across the globe, according to Reuters.

It also raised the stakes for U.S. inflation figures due later on Thursday as a high outcome would only stoke speculation of more aggressive rate hikes from the Federal Reserve, it said.

Hong Leong IB Research in a traders’ brief said it sees limited upside rebound on the FBM KLCI and negative broader market sentiment with the weak construction outlook, coupled with speculation of new taxes that could be implemented in the upcoming Budget 2019.

“Hence, investors will be taking a cautious approach at least for the near term until more clarity on 2nd Nov; limiting the upside potential of KLCI around 1,750-1,760,” it said.