KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
KUALA LUMPUR (April 10): The FBM KLCI ended 12.26 points or 0.9% lower at 1,357.5 today after the Organization of the Petroleum Exporting Countries and its allies, including Russia - a group known as OPEC+ - agreed to reduce crude oil output by a smaller quantum than what the market was anticipating.
Such sentiment had hurt crude oil prices and shares of oil and gas-related companies.
Fund managers said Malaysia equities could have also ended lower today on negative sentiment over the extension of Malaysia's movement control order (MCO) until April 28 to curb the COVID-19 pandemic.
“It is possible that there is a low sentiment issue as a result of the extension of the MCO. However, another issue is the production cut by OPEC+ as the market does not think it is enough,” Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com.
It was reported that oil producers in the OPEC+ group, led by Saudi Arabia and Russia, were expected to pressure Mexico on Friday to seal an accord for a collective cut in output of 10 million barrels per day, before asking other nations for a further 5 million bpd of cuts. The United States has encouraged global cooperation to bolster an oil market that collapsed as the coronavirus pandemic accelerated in March and producers resorted to a price war after failing to agree on how to prop up prices.
"Oil prices tumbled on Thursday despite OPEC+ nearing agreement as the lockdowns ordered across the world sucked life out of the global economy, and traders reckoned that even a combined reduction of 15 million bpd would be too little to stabilise the market. Markets were closed for the Good Friday holiday in major centres. But on Thursday, Brent oil prices, which hit an 18-year low last month, were trading around US$32 a barrel, half their level at the end of 2019,” Reuters reported today.
In Malaysia, the MCO, which was initially scheduled between March 18 and 31, requires non-essential businesses to stop operations, while the public has been ordered to stay at home to curb the COVID-19 outbreak.
On March 25, Prime Minister Tan Sri Muhyiddin Yassin said the government decided to extend the MCO until April 14, because updates from the National Security Council and Health Ministry indicated an increase in COVID-19 cases. Today, Muyiddin said the Government has decided to extend the MCO to April 28.
Across Bursa Malaysia today, 3.72 billion shares worth RM1.68 billion were traded as O&G counters Hibiscus Petroleum Bhd, Bumi Armada Bhd and Sapura Energy Bhd ended as the top three most actively traded stocks.
Top active stock Hibiscus registered a volume of some 171 million shares. The stock closed down three sen or 5.71% at 49.5 sen.
Source: The Edge
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