Kuala Lumpur  - Malaysia's share market dropped 3.1 per cent Tuesday on panic selling by investors concerned over a dismal global economic outlook, said dealers.

The Kuala Lumpur Composite Index dropped 26.67 points or 3.1 per cent to 832.44. The index had dipped to as low as 801.27 points in the mid-morning, but later regained some ground.

Losses were seen in all sectors of the economy but were particularly strong in the mining, construction and technology industries.

Analysts said investor sentiment was shaken by fears of a global recession and Monday's downturn across Asian markets.

Malaysia's stock market was closed Monday for a public holiday. (dpa)