KUALA LUMPUR (March 10): The FBM KLCI closed up 6.31 points or 0.44% today at 1,430.47 on bargain hunting while crude oil prices rebounded as investors weighed the impact of the Saudi Arabia-Russia crude oil price war and global Covid-19 outbreak.
At 5pm today, the KLCI closed up on bargain hunting after ending down 58.94 points or 3.97% yesterday at 1,424.16.
Today, Malaysian shares rose with Asian equities. Reuters reported that Asian stocks bounced, and bond yields rose from record lows on Tuesday on hopes that global policymakers would introduce co-ordinated stimulus to cushion the economic impact of the coronavirus outbreak.
In commodity markets, it was reported that crude oil prices bounced 8% on Tuesday from the biggest one-day rout in nearly 30 years, as investors eyed the possibility of economic stimulus amid a price war between Russia and Saudi Arabia and as new virus cases slowed in China.
It was reported that Brent crude futures rose by US$2.85, or 8.3%, to US$37.21 a barrel by 0605 GMT, while US West Texas Intermediate crude gained US$2.46, or 7.9%, to US$33.59 a barrel.
"Both benchmarks plunged 25% on Monday, dropping to their lowest since February 2016 and recording their biggest one-day percentage declines since Jan 17, 1991, when oil prices fell at the outset of the US Gulf War,” Reuters reported.
In Malaysia today, RHB Investment Bank Bhd analyst Alexander Chia and economist Peck Boon Soon wrote in a note that the sudden collapse in crude oil prices was another blow for equity markets, amid the Covid-19 outbreak and Malaysia’s political upheavals.
"Risks are weighted on the downside in the near term, as all three variables continue to play out without a near-term resolution in sight. Nonetheless, we expect political risks to remain elevated. The investment climate remains firmly risk-off,” Chia and Peck said.
They said RHB has lowered its end-2020 KLCI target to 1,530 points from 1,600. "The elevated risks and uncertainty means that, in the near term, the priority for investors is the preservation of capital — with core holdings in defensive sectors, resilient high-yield stocks, glove makers and more reasonably-priced consumer names,” they said.
Across Bursa Malaysia today, 4.42 billion shares were traded for RM3.21 billion. Top gainers included KLCI stocks MISC Berhad and Public Bank Bhd.
Dayang Enterprise Holdings Bhd emerged among leading decliners and most-active stocks. Dayang’s share price closed down 20 sen or 13.16% at RM1.32 with some 150 million shares traded.
Source: The Edge
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