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 inched higher during early trade on Monday, supported by concerns that ongoing conflict in the Middle East may disrupt supply from the key producing region, and expectations that the recent US interest rate cut will stimulate demand.
Brent crude futures for November delivery rose by 20 cents (0.3%) to US$74.69 per barrel, while US crude futures for November gained 22 cents (0.3%) to US$71.22 per barrel as of 0045 GMT. Both contracts saw gains in the previous session, buoyed by the US rate cut and a dip in supply following Hurricane Francine.
The US Federal Reserve’s half-point interest rate cut last Wednesday, larger than expected, has bolstered hopes for increased economic activity and energy demand. A weaker US dollar has also boosted investor sentiment. However, concerns linger over the possibility of a slowing job market, which could affect the broader economic outlook.
Further elevating prices are geopolitical tensions in the Middle East, with fighting between Israel and Iranian-backed militias raising fears of wider regional instability. Clashes between Hezbollah and Israel escalated over the weekend, increasing concerns about potential disruptions in oil supplies from Iran, a major producer in the region.
Market participants remain watchful of these developments as they assess the impact on global oil markets.
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