Kuala Lumpur - Malaysian shares dropped 3.6 per cent Friday on panic selling after dips in global markets.

The Kuala Lumpur Composite Index closed at 934.01, down 34.88 points.

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

Stock analysts attributed the drop to panic selling by investors because of increasing uncertainty in global markets.

"Everything looks a bit gloomy now," a broker at a local investment institution said.

Analysts said the downward trend was expected to continue into the next week. (dpa)