KUALA LUMPUR, Sept 25 (Bernama) -- Bursa Malaysia ended flat on Friday amid concerns over rising US Treasury yields and escalation in West Asia. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.69 points, or 0.04 per cent, to 1,671.62, from Thursday’s close of 1,672.31. The benchmark index, which opened 2.56 points higher at 1,674.87, moved between 1,666.99 and 1,675.47 during the day. Market breadth was nearly even, with decliners outnumbering gainers 590 to 575. A total of 534 counters were unchanged, while 1,224 were untraded and 43 suspended. Turnover widened to 4.07 billion units worth RM2.69 billion from 3.32 billion units valued at RM2.74 billion on Thursday.
It's not a good news for the energy shares as they led losses after oil prices plunged.
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| Not looking good for oil |
After OPEC decides against the cut, Brent crude oil plunged as much as $6.50 a barrel on Thursday, and U.S. crude fell by nearly as much, posting the steepest one-day falls since 2011.
Benchmark Brent futures settled at $72.58 a barrel, down $5.17, after hitting a four-year low of $71.25 earlier in the session. The contract was on track for its biggest monthly fall since 2008.
U.S. crude was last down $4.64 at $69.05 a barrel.
This is definitely not a good news for oil producing countries like Russia and even Malaysia.
PRICE WAR?
It is going to be a price war. The US crude may even slide to below $65 a barrel in coming weeks and this could be a factor against the economy of the Northern American shale oil production.
While many were saying the oil price may have hit a bottom, some analysts have a differing point of view.
If it's going into price war, any bottom may just be difficult to predict.
Expect the O&G sector in Malaysia to be affected when the trade starts today.
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