KUALA LUMPUR, Aug 9 — The KL share market lost an estimated RM34 billion of its value this morning as carnage continued to sweep through regional share markets.
This means that local shares have lost about RM100 billion of their value since last Tuesday, or roughly five times the projected cost of the first phase of the new KL MRT system.
Losers vastly outnumbered gainers 906 to 51 as investors dumped shares in the wake of a worldwide equities slump.
There were some signs that shares were fighting back however as the benchmark FMBKLCI index, which fell almost 5 per cent in early morning trade, recovered slightly from its morning low of 1423 to hit 1460 as at 12.45pm.
The broad-based Emas index meanwhile rebounded to 9964 from its low of 9737.
Pledges from European Central Bank to tackle the euro zone debt problem failed to sooth investor fears as gold soared to record levels and US stocks suffered their worst plunge since December 2008, leading to fears of a bear market after a three-year bull run.
HwangDBS Vickers said in a report today that more downside could be in store when trading on Wall Street resumes today and “given the prevailing jittery market mood, it seems too early to bottom fish at this juncture.”
OSK Research yesterday downgraded the Kuala Lumpur stock exchange from overweight to neutral and cut its year-end target for the FBMKLCI to 1557 from 1680 due to a global crisis in confidence.
Tokyo share prices tumbled by more than four per cent in early morning trade while Hong Kong fell 6.5 per cent.
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