Malaysian stocks decline for four consecutive days

Malaysian stocks extend its losing streak on Friday, after the Federal Reserve hinted that it could end its stimulus programme middle of next year.

The benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI) fell by more than 20 points to as low as 1737.66 during early trade.

It is also the FBMKLCI's forth consecutive day of losing streak.

At 11:25am, the index recovered slightly at 1,751.87 -- representing a 0.6 per cent decline.

"Asian stocks are poised for another day of sharp falls on Friday, tracking a deep sell-off in global risk assets overnight after the Federal Reserve gave markets a time-line for the unwinding of its monetary stimulus and as Chinese financial markets face a crash crunch.

"For the FBMKLCI, immediate support is seen at 1740 points," said JF Apex Research in its morning report.

As expected, almost all Asian market are seeing red during early trade today.

Japan's TOPIX and Nikkei 225 fell by about 1 per cent.

Hong Kong's Hang Seng Index, Korea's KOSPI, Shanghai's Stock Exchange Composite Index, Singapore's STI, Thailand's SET Index and Jakarta's Stock Exchange Composite Index fell between 0.47 per cent and 2.53 per cent.

Philippines' PSEi Index is the biggest loser in Southeast Asia -- with a 2.93 per cent decline as at 11:22am.

Global stocks were badly hit after Federal Reserve chairman Ben S. Bernanke said that if the economy and job market continue to improve, a gradual tapering down of the bond purchases could begin later this year

The reduction will be continued until next year until they stop in mid-2014, assuming the unemployment rate, falls to about 7 per cent by then. Currently, the US unemployment rate is at 7.6 per cent.

Besides concern on the Fed's tapering on its stimulus programme, investors are also concerned on the slowing China economy.