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.
Oil prices continued their three-day slide on Friday, with Brent crude dropping by 0.28% to US$71.40 per barrel and WTI falling 0.21% to US$67.53. Both benchmarks are set for weekly losses, with Brent crude expected to shed 4% and WTI 6%.
The decline in prices is driven by expectations of increased output from Libya and the Opec+ group, which have overshadowed China’s fresh stimulus efforts. China’s central bank recently lowered interest rates and injected liquidity into the banking system to boost economic growth, sparking optimism across other asset classes, but oil markets remain fixated on supply concerns.
Libya's recent agreement to resolve a dispute that had sharply reduced its oil production is expected to restore 500,000 barrels per day to the market. Additionally, Opec+, which is currently cutting oil output by 5.86 million bpd, plans to reverse 180,000 bpd of those cuts in December.
Despite the stimulus from China, the world’s top oil importer, analysts like Priyanka Sachdeva of Phillip Nova note uncertainty over whether this will translate into higher fuel demand. While the stimulus may offer some relief, oil markets are still grappling with weakening demand and rising supply concerns.
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