KLCI down 3pct as oil prices crash

The FBM KLCI slid at mid-morning as investors reacted to falling crude oil prices.

At 10.36am, the FTSE Bursa Malaysia KLCI (FBM KLCI) was at 1,434.63 points, down 48.47 points or 3.27 percent, after opening 1.5 percent lower than closing on Friday.

The FBM KLCI is down 11.76 percent over the past year and is currently at levels not seen since October 2011.

Crude oil prices took a beating after Opec failed to agree on production cuts.

Saudi Arabia reacted by slashing prices and is believed to be preparing to ramp up production, leading to fears of an all-out price war.

At the time of writing, Brent Crude Oil price was at US$33.91 a barrel, down 25.09 percent.

Dismal oil prices will add pressure on Malaysia as Budget 2020 was designed with an estimate that the average oil price would be at US$62 per barrel.

Federal government revenue is heavily dependent on dividends by state-owned Petroliam Nasional Bhd (Petronas).