KUALA LUMPUR: Selling pressure on banks including Maybank and AmBank pushed the FBM KLCI deeper into the red on Monday while key regional markets recorded losses of up to 2.44%.
At the close, the KLCI fell 9.4 points or 0.53% to 1,762.87. Turnover was 1.37 billion shares valued at RM1.57bil. There were 314 gainers, 431 losers and 291 counters unchanged.
At Bursa Malaysia, banks saw some selling pressure following the central bank's move to tighten the lending rules to consumers to reduce the debt level.
Reuters reported China shares had their worst day in two weeks on Monday, with Hong Kong markets also weaker, after Beijing pledged to cut off credit to industries plagued by overcapacity.
It said the Hong Kong property sector was hit by poor weekend sales, rooted in fears of higher interest rates after Treasury yields touched two-year highs. Solid U.S. jobs data on Friday had spawned expectations the Federal Reserve may soon pare its stimulus.
At Bursa Malaysia, Maybank fell eight sen to RM10.30, erasing 1.22 points from the KLCI while AmBank lost 13 sen to RM7.52 and wiped out 0.81 of a point. Public Bank shed six sen to RM16.96 and CIMB three sen to RM8.24.
HLFG fell 38 sen to RM14.30 and Hong Leong Bank was down 18 sen to RM13.80. AFG was down 23 sen to RM5.50 and MBSB fell 13 sen to RM3.06.
Consumer stocks also fell, with Nestle down 88 sen to RM68.10, BAT 28 sen lower at RM58.40 but Carlsberg added 20 sen to RM14.60.
Crude palm oil for third month futures fell RM6 to RM2,379. PPB Group fell the most among plantation stocks, down 28 sen to RM14.22 and Genting Plantations 22 sen to RM9.80.
Among the key regional markets:
Japan's Nikkei 225 fell 1.4% to 14,109.34;
Hong Kong's Hang Seng Index fell 1.31% to 20,582.19;
Shanghai's Composite Index fell 2.44% to 1,958.27;
Taiwan's Taiex fell 1.44% to 7,886.34;
South Korea's Kospi fell 0.9% to 1,816.85;
Singapore's Straits Times Index fell 0.45% to 3,155.47.
The ringgit weakened against the US dollar at 3.2095 from 3.1875.
US light crude oil fell 33 cents to US$102.89 and Brent shed 74 cents to US$106.98.
Spot gold rose US$2.35 to US$1,225.49.