KUALA LUMPUR: The FBM KLCI slipped below the 1,500-point psychological level as geopolitical tensions and global recession risks accelerated the profit-taking activity on the market.
At 12.30pm, the key index was down 5.46 points to 1,496.61 after descending rapidly in the last 90 minutes of the early trading session.
There was a broad-based decline of stocks with 589 decliners and 205 gainers. Trading volume was 1.68 billion shares exchanging hands for RM781.68mil.
On Tuesday, Asian markets, especially China markets, have been on the retreat as US House Speaker Nancy Pelosi is scheduled to visit Taiwan later today, despite warnings from Beijing.
The expectation of worsening Sino-US relations compounded investor jitters over weak factory data released this week in China, Europe and the US, signaling a weakening global economy and potential recession.
The Shanghai Composite Index was seen diving 2.9% to 3,166 while China's blue chip CSI300 slumped 2.5% to 4,085.
Hong Kong's market, already beset by regulatory woes as China cracks down on the technology sector, saw its benchmark Hang Seng index plunge 2.7% to 19,619.
In Japan, the Nikkei was down 1.5% to 27,569 while South Korea's Kospi fell 0.8% to 2,433.
On Bursa Malaysia, energy stocks fell 2.4% on the back of Brent crude futures' sharp decline below the US$100 a barrel level.
Hibiscus Petroleum dropped four sen to 84.5 sen, Petron Malaysia
fell 21 sen to RM4.86 and Hengyuan Refining slipped eight sen to RM4.23.
Among blue chips, PETRONAS Chemicals shaved two sen to RM8.93, Tenaga Nasional slid 20 sen to RM8.30 and IHH dropped six sen to RM6.44.
Press Metal however recovered from earlier losses to rise four sen to RM4.94.
Of actives, CSH was down 1.5 sen to six sne, PUC shed 0.5 sen to four sen and Borneo Oil was unchanged at 2.5 sen.
