The reasons for the FBM KLCI free fall are the margin calls and force-selling. Those who cannot cover their margin calls are forced to sell and the stock goes to a new low. Yoong said that the negativity of this current crisis far exceeds the Global Financial Crisis of 2008. The current crisis approximates that of the Asian Financial Crisis of 1997. Wong says that in the aftermath of the panic selling, value is emerging.

Source: The Star March 21, 2020 01:18 UTC