KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Oil prices surged on Friday, recording over 3.5% weekly gains, driven by positive economic data and signals from Federal Reserve policymakers that interest rates could be cut as early as September. The rise in prices was further fueled by ongoing geopolitical tensions in the Middle East, which raised concerns about potential disruptions to oil supply.
Key Highlights:
Price Increases: Brent crude futures settled 50 cents higher at $79.66 per barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 65 cents to $76.84 per barrel. For the week, Brent gained more than 3.5%, and WTI rose over 4%.
Economic Data Boost: U.S. jobless claims fell more than expected, easing concerns about the labor market, while China's consumer price index rose slightly faster than anticipated, both contributing to the positive momentum in oil prices.
Geopolitical Tensions: Escalating conflicts in the Middle East, including Israeli airstrikes in Gaza and potential retaliatory actions by Iran, have heightened fears of supply disruptions from the world’s largest oil-producing region. Attacks by Iran-aligned Houthi militants on international shipping near Yemen have also added to supply concerns.
Supply Risks: Libya's National Oil Corp declared force majeure at its Sharara oilfield due to protests, leading to a reduction in output, which further supported oil prices.
Currency Influence: A slight dip in the U.S. dollar index made oil more affordable for foreign buyers, lending additional support to prices.
The combination of easing economic fears, potential rate cuts, and heightened geopolitical risks has driven oil prices higher, with analysts suggesting that prices could soon test the $80 per barrel level.
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