KUALA LUMPUR: Stock prices on Bursa Malaysia closed sharply lower on Friday, as an overnight plunge on Wall Street sent regional markets reeling.

On Thursday, the Dow Jones Industrials Average Index plunged 358 points to 11,453 points - its lowest close since Sept 2006.

While concerns over the health of the US economy, the housing market and inflation continue, the latest plunge was precipitated by a worsening outlook for the financial and auto sectors, as well as rapidly rising oil prices. Crude oil prices topped a record high of just over US$140 (RM462) per barrel - fueling further inflationary fears.

The local stock market also took its cue from Wall Street, with the KLCI in negative territory throughout the day. The benchmark index fell as much as 17 points at the open, but recovered part of it to end 13.3 points lower at 1,190.5 points - below the psychologically important 1,200 point level.

Market breadth was negative, with declining stocks beating advancing ones by a 2-to-1 margin at the close. Trading volume remained low with just 378 million shares changing hands.

Volume leaders on Friday include AirAsia, Luxchem, Gamuda, Resorts, TMI, IOI Corp and TM. Gainers include LCL, Loh & Loh, Berjaya Land and Hai-O. Losers include CCB, DiGi, Luxchem, TMI and MPI.

It is unclear where the market will head next given the prevailing host of external economic uncertainties. The low trading volume suggests more investors are staying on the sidelines.

Investor confidence has already been affected by earlier domestic political issues, prevailing external uncertainties and rising inflationary pressures following the recent sharp petrol price hike. Investors will likely continue taking their cues from external factors. Further falls on Wall Street and escalating crude oil prices will further dampen sentiment.