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Monday, February 6, 2017

Market Daily Report: FBM KLCI up 0.37%, helped by gains in O&G counters





KUALA LUMPUR (Feb 6): The FBM KLCI rose 0.37% or 6.23 points to 1,691.24 today, bolstered by gains in oil and gas (O&G) counters on the more positive outlook for global oil prices.
Analysts noted O&G counters saw fresh interest after news that the US Department of Energy could start selling off some of its strategic petroleum reserve soon in a bid to minimise the nation’s oil stockpile.

“Volumes are definitely picking up, although there isn’t a lot of quality buying happening as we speak,” said TA Securities Holdings Bhd senior technical analyst Stephen Soo.

“As far as active stocks are concerned, penny as well as O&G stocks are the most reactive,” Soo told The Edge Financial Daily over telephone. “With that, the O&G counters are the most active currently on the more positive outlook of global oil prices.”

Active O&G stocks included Hibiscus Petroleum Bhd and Borneo Oil Bhd, which were the day’s top two active counters.

On another note, US President Donald Trump’s move to ease regulations on the financial industry is not expected to raise a red flag for now, although it could affect local policies and trigger more uncertainties.

“Trump’s call to scale back on financial regulations would affect the local stock market albeit not so much, for now. However, we could be seeing it impacting our policies, which in turn would bring about more uncertainties and blunders,” Soo said.

A total of 2.63 billion shares valued at about RM2.32 billion were traded On Bursa Malaysia today. There were 622 gainers and 286 losers.

KIP Real Estate Investment Trust (REIT) ended its maiden trading day 0.5 sen or 0.5% lower at 99.5 sen, versus its initial public offering price of RM1 per unit.

Reuters reported that Asian shares inched higher today on the back of stronger momentum by Wall Street, while the US dollar staggered by slow progress on US’ fiscal stimulus.

Japan’s Nikkei 225 rose 0.31%, Hong Kong’s Hang Seng Index inched up 0.95%, and the Korea Composite Stock Price Index nudged 0.22% higher.


Source: The Edge

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