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Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
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Oil Prices Steady as Investors Await Fed Rate Decision

 

Oil prices remained stable on Wednesday, following gains in the previous two sessions, as investors focused on the anticipated US Federal Reserve (Fed) interest rate cut and potential geopolitical tensions in the Middle East.

Brent crude futures for November fell slightly by three cents to US$73.67 per barrel, while US crude futures for October slipped by 11 cents, or 0.2%, to US$71.08 per barrel at 0053 GMT. Both contracts had increased by around US$1 per barrel on Tuesday due to ongoing supply disruptions in the US following Hurricane Francine and market speculation about rising demand following what could be the Fed's first rate cut in four years.

The market was also buoyed by concerns over potential output disruptions in the Middle East after Israel allegedly attacked militant group Hezbollah in Lebanon with explosive devices, heightening tensions in the region.

"Markets have calmed down as concerns over hurricane damage and escalating tensions in the Middle East have been factored in," said Mitsuru Muraishi, an analyst at Fujitomi Securities. "Now, investors are focusing on the Fed's rate cuts which could revitalise US fuel demand and weaken the dollar," he added, predicting that oil prices might maintain a bullish trend after Brent hit its lowest point since 2021 last week.

Traders are betting that the Fed will start a series of rate cuts with a half-percentage-point reduction on Wednesday, a move that could further support oil prices by weakening the dollar and stimulating demand.

Meanwhile, Hezbollah has vowed to retaliate against Israel after the explosive-laden devices detonated across Lebanon on Tuesday, causing at least eight deaths and nearly 3,000 injuries, including casualties among fighters and Iran's envoy to Beirut. Israel declined to comment on the incidents.

Additional support for the market came from expectations of US oil purchases for the Strategic Petroleum Reserve (SPR). The Biden administration plans to acquire up to six million barrels of oil for the SPR, potentially matching its largest purchase since a historic sale in 2022.

Data from the American Petroleum Institute (API) showed an increase in US oil stockpiles, with inventories rising by 1.96 million barrels for the week ending September 13. Gasoline and distillate stocks also climbed by about 2.3 million barrels each. Analysts polled by Reuters had expected a decline of around 500,000 barrels. The US Energy Information Administration is set to release its report on Wednesday at 10:30 am EDT (1430 GMT).

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