KUALA LUMPUR, March 9 (Xinhua) -- Malaysia's stock market plunged 2.55 percent on Monday as crude oil prices soared past the 100 USD-per-barrel mark amid Middle East conflicts.
The benchmark FBM KLCI closed 43.89 points lower at 1674.17 on Monday after plunging to the lowest level of 1664.07 during the day as investors turned cautious amid surging energy costs.
"With energy costs rising, inflation risks resurfacing and the strategic oil chokepoint at the Strait of Hormuz under threat, markets are likely to stay volatile as escalating Middle East tensions fuel expectations of a prolonged conflict," Hong Leong Investment Bank Research said in a note on Monday.
Maybank Investment Bank, however, said in a note on Monday that barring further escalation of the Middle East conflict, it believed Malaysia's market outlook remains favorable.
"Our current assessment of the situation suggests that the impact remains manageable unless the Middle East conflict prolongs," said the research house.
Meanwhile, MBSB Research said in a note on Monday that foreign investors ended a two-week consecutive streak of net selling and recorded net foreign inflows of 411.4 million ringgit (103.77 million U.S. dollars) last week.
According to the research house, local institutions also recorded a net outflow of 408.3 million ringgit, extending to the fifth consecutive week of net selling last week.
Local retailers also turned net sellers during the week, snapping their two-week net buying streak, recording -3.1 million ringgit in net outflows. (1 ringgit equals 0.25 U.S. dollars) ■