KUALA LUMPUR: The FBM KLCI extended its losses and fell almost 18 points at midday in line with weaker key regional markets, as investors stayed on the sidelines on concerns about the US rate hike.
At 12.30pm, the KLCI fell 17.96 points to 1,789. Turnover was 1.068 billion shares traded valued at RM834mil. There were 183 gainers, 549 decliners and 240 counters unchanged.
Reuters reported Asian stocks buckled while the dollar held firm on Monday after strong US jobs data fanned expectations that the US Federal Reserve may raise interest rates sooner than previously thought.
Stock markets across Asia, including Japan's Nikkei, Australia, Malaysia and Indonesia fell broadly, with MSCI's broadest index of Asia-Pacific shares outside Japan dropping 1.2%.
US non-farm payrolls (NFP) data on Friday showed the unemployment rate hit a 6-1/2-year low of 5.5% in February.
Wage gains were only slight, yet the data stoked expectations that the Fed was now likely to drop a reference to patience on the timing of a rate hike at its next policy meeting on March 18, thus opening the door for a June rate rise.
JF Apex Research in a note said following the negative sentiment in the US, it expects the KLCI to follow suit and test its support of 1,800 points.
"Asian markets are expected to trend cautiously ahead of the release of slew of China economic data during the week-long National People’s Congress which started on last Thursday," it added.
At Bursa Malaysia, LPI fell 64 sen to RM21.50 and Public Bank 24 sen to RM18.24.
PetDag fell 44 sen to RM18.54 and PetGas 42 sen to RM22.44.
HLFG fell 32 sen to RM16.88.
Nestle fell 48 sen to RM74 and BAT 28 sen to RM68.84.
Gainers were OWG, up 13 sen to RM2.07 and KLCC eight sen to RM6.90.
Faber rose 23 sen to RM3.04 and Vitrox 11 sen to RM3.35.
Nikkei 225 fell 0.77% to 18,825.77 -145.23 -0.77%
Hong Kong Hang Seng Index fell 0.8% to 23,969.54
Shanghai Stock Exchange Composite Index fell 0.94% to 3,210.86
Taiwan Stock Exchange Weighted Index fell 0.7% to 9,577.77
Korea Stock Exchange KOSPI Index fell 1.04% to 1,991.91
Straits Times Index STI fell 0.5% to 3,400.37
Crue oil (WTI) fell 24 cents to US$49.37 and Brent 46 cents to US$59.27.
Spot gold rose 37 cents to US$1,202.31
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