KUALA LUMPUR, Feb 11 (Bernama) -- Bursa Malaysia ended higher today as buying on selected blue chips continued, said a brokerage. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 8.85 points or 0.51 per cent to 1,756.39 from Tuesday’s close of 1,747.54. The barometer index opened 3.69 points higher at 1,751.23 before moving as low as 1,745.51 in early trade to as high as 1,757.15 during the mid-afternoon session. Market breadth was positive with gainers leading losers 575 to 474, while 549 counters were unchanged, 1,087 untraded and 11 suspended. Turnover expanded to 2.55 billion units valued at RM3.06 billion from yesterday’s 2.19 billion units valued at RM2.35 billion.
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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