The key FBM KLCI fell briefly below the crucial 1,600 level in afternoon trade on Monday on mounting selling pressure in line with the key Asian markets.
KUALA LUMPUR: Domestic economic concerns about higher taxes to be announced in the Nov 2 Budget weighed on Bursa Malaysia as it trailed far behind the key Asian markets on Monday.
At 5pm, the KLCI was down 9.67 points or 0.56% to 1,722.47. Turnover was 1.95 billion shares valued at RM1.68bil. There were 315 gainers, 497 losers and 354 counters unchanged.
The ringgit also weakened against the major currencies, falling 0.05% to the US dollar to 4.1595; down 0.13% against the pound sterling at 5.4276; down 0.59% against the euro at 4.7891 and fell 0.18% to the Singapore unit to 3.0200.
Reuters reported European shares gained amid relief over Italy's budget, following rallies in Asia after China promised to provide stimulus to stabilise its economy and offset the impact of US tariffs.
Promises of tax cuts and coordinated official statements of support for stock markets in the world's second-largest economy saw Chinese shares stage their biggest one-day surge in three years.
Shanghai blue chips jumped around 4.5%, adding to Friday's bounce on Beijing's pledge of support for the economy and companies.
At Bursa, foreign funds decided to reduce their holdings ahead of the announcement of the Budget proposals.
BAT fell the most, down RM1.02 to RM31 while Nestle lost 30 sen to RM144.20, F&N was down 18 sen to RM35.02. However, Dutch Lady
rose 58 sen to RM63.98.
Axiata fell 22 sen to RM3.49 and erased 3.6 points from the KLCI while Maxis lost 17 sen to RM5.22 and wiped out 2.4 points and Telekom 10 sen lower at RM2.31 while Digi shed five sen to RM4.25.
RHB Bank fell 12 sen to RM5.21 though analysts viewed it as the best banking stock. CIMB fell four sen to RM5.98, Hong Leong Bank 10 sen lower at RM20.62, Public Bank two sen to RM24.98 and Maybank unchanged at RM9.60.
Sime Darby lost six sen to RM2.44, Hap Seng 10 sen to RM9.60, Hartalega three sen to RM6.37 while Genting was up two sen to RM7.46, IHH five sen to RM5.01 and Genting Malaysia seven sen to RM4.56.
Crude palm oil rose RM12 to RM2,236 per tonne but it was not enough to support plantation stocks.
Sime Plantation fell five sen to RM5.23, PPB Group four sen to RM16.86, KL Kepong was unchanged at RM25 and IOI Corp gained two sen to RM4.55.
As for oil and gas stocks, Petronas Gas added eight sen to RM18.40, Petronas Dagangan six sen lower at RM26.22 and Petronas Chemical shed one sen to RM9.38.
US light crude oil and Brent advanced 20 cents each to US$69.32 and US$79.98.
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