KUALA LUMPUR (Aug 17): The FBM KLCI has plunged to its lowest level today in more than three years since June 22, 2012, dragged by the continued slump in energy prices and the ringgit.
At 3pm, the benchmark index was at contracted 23.62 points or 1.48% to 1571.20 points, after falling to a low of 1569.19 points earlier in the day.
At the point of writing, the US dollar was seen continuing its push to a fresh 17-year high against the ringgit, after appreciating 0.58% to quote at 4.1042, amid concerns of further yuan devaluation and a rate hike by the US Federal Reserve.
The ringgit had earlier dipped to as low as 4.1315 against the greenback.
In the commodities market, the Brent Crude Oil index and US crude oil index (also known as the West Texas Intermediate) continued to weaken today. As at 2.20pm, Brent crude was down 1.22% at US$48.59 per barrel, while the WTI retreated 1.27% to US$41.96 per barrel.
Across the local exchange, some 1.35 billion shares, valued at RM969.34 million, exchanged hands as at 3pm.
Market sentiments remained bearish, with declining counters outpacing rising ones at 844 to 104.
The top gainers included Dutch Lady Milk Industries Bhd, while Nestle (Malaysia) Bhd led the losing counters.
Also of note is oil-related counters like Sapurakencana Petroleum Bhd, which fell as much as 22 sen or 11.4% to settle at RM1.71, after some 24.7 million shares were traded.
Meanwhile, the most actively-traded stock was Frontken Corp Bhd, with a trading volume of some 32.48 million.
AllianceDBS Research said in a note today that the weekly FBM KLCI had breached the 1,600 level last week to touch a low of 1,590.57 points, before settling off the week's low at 1,596.82 points.
According to the firm, the downside gap indicated an urgency to liquidate stock positions.
"Following the weak down close, the benchmark index is expected to test a lower level, with an immediate support at 1,570.
"A fall below 1,570 could send the market down to the subsequent support at 1,550. The hurdle is at 1,600. A rise above 1,550 should see a test of next resistance at 1,626," it added.
Reuters reported today that Asian stocks were dragged lower by volatile Chinese equities on Monday, as relative stability in the yuan failed to assuage underlying concerns that Beijing may push its currency further down after last week's surprise devaluation.
In Europe, however, markets look set to take their cues from Friday's modest gains on Wall Street. Spreadbetters forecast a higher open for Britain's FTSE, Germany's DAX and France's CAC, it added.