KUALA LUMPUR, Feb 6 — A federal minister sought to talk up the Bursa Malaysia FBM KLCI today, after the local stock exchange briefly dipped below the 1,800-point mark following turmoil in the US and elsewhere.

At noon, the index regained lost ground to return to 1,804.05 or 49.02 points lower than yesterday’s closing.

The FBM KLCI had lost over 56 points around mid-morning.

"Notwithstanding big drops in last 2 days due 2 global events, Bursa Malaysia index has done well since last year,” Minister in the Prime Minister’s Department Datuk Abdul Rahman Dahlan wrote on Twitter.

"Analysts believe index will continue to rise. Many shares remain undervalued-especially 2nd liners who lagged market in recent years.”

Financial markets went into a tailspin yesterday after US stocks plunged in highly volatile trading.

The Dow Jones Industrial Average fell by almost 1,600 points in intra-day trading, its biggest ever point-to-point loss within one trading session, as investors grappled with rising bond yields and potentially firming inflation.

Futures on the US S&P 500 also plunged 2.5 per cent to reach a four-month low in trading today, according to the Reuters news agency.

Local analysts have predicted further declines in the local market in tandem with global counterparts.