KUALA LUMPUR, Jan 27 (Bernama) -- Bursa Malaysia finished in the negative territory today dampened by subdued trading observed across the board ahead of the upcoming Chinese New Year (CNY) festive holidays, said an analyst. At 5 pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 14.76 points, or 0.94 per cent, to end at its intraday low of 1,558.97 compared to Friday’s close of 1,573.73. The benchmark index opened marginally lower by 0.42 of-a-point at its intraday high of 1,573.31 and moved in a downtrend path towards closing. Market breadth was negative with decliners thumping gainers 782 to 235, with 415 counters unchanged, 916 untraded and 60 suspended. Turnover narrowed to 2.76 billion units valued at RM2.38 billion compared to 3.0 billion units valued at RM3.06 billion registered last Friday. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan noted that the thin trading volume today indicated a clear retreat by investors ...
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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