Shares drop 3.1% in panic selling

updated 5.15pm Bursa Malaysia’s share prices shed almost 6% this morning as investors continue to be spooked by the global economic outlook, but recovered slightly after lunch to close with a lost of 3.1%.

When the markets break for lunch at 12.30pm, the Kuala Lumpur Composite Index had shed 51.16 points, or 5.95%.

The KLCI was at 807.95, down from 859.11 after it closed last Friday.

But the stockmarket recovered slightly after lunch to regain some 24 points to end the day at 837.69.

Nevertheless, it still shed 26.67 points for the day, or 3.1 percent. "There was panic selling in the market after US stocks slumped to their lowest levels in five years overnight," one of the dealers was quoted by Bernama as saying.

The steep decline of KLCI to its lowest level in four years is due to similar fall in regional markets on concern over a severe global economic recession ahead.