Panic selling activities across the board at midday today dragged down the benchmark FBM Kuala Lumpur Composite Index (FBM KLCI) three percent lower to 1,477.8, dealers said.

They said news reports over a possible new global financial crisis and its  impact on Asia, triggered panic selling on equities markets across the globe, including Malaysia.

At the end of the morning session, almost all heavyweights and bluechip counters were in negative territory.

As of midday, the FBM KLCI had lost 46.63 points to 1,477.8, after opening 9.24 points lower at 1,515.19, compared to Friday’s close of 1,524.43.

According to MIDF Research, foreign investors have been liquidating their holdings on most Asian bourses including Malaysia, with some even leaving the shores.

It said the decision by rating agency Standard and Poors (S&P) to downgrade the sovereign credit rating of the United States, would worsen the market situation by increasing volatility this week.

Meanwhile, the Finance Index lost 428.301 points to 14,060.85, the Plantation Index fell 390.27 points to 7,202.67 and the Industrial Index slid 58.38 points to 2,699.86.

The FBM Emas Index dipped 397.35 points to 10,080.95, the FBM Ace Index fell 308.02 points to 3,742, the FBMT100 lost 361.51 points to 9,906.24 and FBM 70 Index was 597.49 points lower at 10,915.63.

Losers thumped gainers 1,091 to 31 with 44 counters unchanged, 325 untraded and 42 others suspended.

Turnover stood 1.108 billion shares worth RM1.781 billion.

For the actives, Axiata Group declined 13 sen to RM4.94, Malaysia Building Society-Warr 11/16 eased 6.5 sen to 69 sen and UEM Land Holdings was 30 sen lower at RM2.07.

Among heavyweights, Maybank lost 30 sen to RM8.47, CIMB was 10 sen lower at RM8.19, Sime Darby declined 35 sen to RM8.70 and Petronas Chemicals dropped 44 sen to RM6.15.

- Bernama