KUALA LUMPUR: A sea of red swept through regional stock markets, pulling Bursa Malaysia lower on Monday amid massive global equity sell-offs and mounting fears of a looming US recession.
Similar sentiment was also seen in regional markets, with Japan's Nikkei 225 Index dropping over 4,000 points, or more than 12 per cent.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) plunged 74.57 points or 4.62 per cent to 1,536.48 from Friday's close of 1,611.05.
The key index started 17.69 points lower at 1,593.36 - its peak for the day - before sliding to a low of 1,532.24 during the mid-afternoon session.
On the broader market, losers outnumbered gainers 1,658 to 83, with 131 counters unchanged.
Turnover surged to 9.26 billion units valued at RM7.97 billion, up from Friday's 5.17 billion units worth RM3.98 billion.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said although signs of a US economic hard landing were anticipated, the investing community had largely ignored them, focusing instead on Wall Street's record-breaking run since early this year.
He believes it is time to consider a "buy on weakness" approach as today's sell-off on Bursa had been excessive.
"We expect the local market to be supported at current levels, especially as government linked investment companies have reduced their foreign equity holdings since early this year.
"Despite the US market facing multiple headwinds, we see this as an opportunity to accumulate on weakness," he told Business Times.
On a positive note, Thong said the ringgit has strengthened to RM4.42 against the US dollar, its highest since the first quarter of 2023.
He noted that support for the FBM KLCI is expected at 1,530, with further support at 1,500.
"We suggest focusing on stocks that declined more than the index, including banks, telcos, and utilities," he added.