KUALA LUMPUR, April 9 (Bernama) -- Bursa Malaysia closed lower on Thursday following the weaker performance of regional peers. The relief rally spurred by yesterday’s ceasefire quickly lost momentum as investors reassessed the credibility and sustainability of the United States-Iran truce. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined 10.07 points to 1,686.24 from Wednesday’s close of 1,696.31. The benchmark index, which opened 3.66 points lower at 1,692.65, moved between 1,680.01 and 1,692.65 during the day. In the broader market, losers trounced gainers 651 to 430, while 540 counters were unchanged, 1,087 untraded and 12 suspended. Turnover eased to 3.05 billion units worth RM2.83 billion from Wednesday’s 3.77 billion units worth RM3.64 billion.
Oil prices rebounded sharply after suffering their largest one-day decline since 2020, as ongoing disruptions in the Strait of Hormuz and fragile ceasefire conditions kept supply concerns elevated.
Oil Prices Bounce Back Amid Supply Uncertainty
Brent crude climbed above US$97 per barrel, while WTI rose near US$98, recovering part of Wednesday’s steep 13% selloff.
The rebound reflects continued uncertainty over whether global energy flows can normalise, as conflicting reports emerge on the status of tanker movements through the Strait.
While Iran signaled that shipping had halted, US officials indicated early signs of reopening, leaving markets caught between optimism and risk.
Hormuz Disruption Remains Critical Risk
The Strait of Hormuz, which accounts for roughly 20% of global oil and LNG flows, remains the key pressure point.
Even if transit resumes, supply recovery is expected to be gradual due to:
- Reduced output at oil and gas fields
- Refinery shutdowns and curtailed production
- Logistical and safety challenges, including mine risks
Iran has reportedly designated safe shipping routes, but uncertainties persist over full operational normalisation.
Ceasefire Fragile as Regional Tensions Continue
Geopolitical tensions remain high despite ceasefire discussions.
Ongoing clashes, including Israeli strikes in Lebanon and Iranian counteractions, threaten to derail progress. Disagreements over ceasefire scope — particularly whether it includes Lebanon — add further complexity.
US-led diplomatic efforts are continuing, with talks expected between Washington and Tehran, but outcomes remain uncertain.
Price Outlook: Elevated Floor Likely
Market participants expect oil prices to remain supported in the near term.
Analysts suggest US$90 per barrel as a key floor, with prices unlikely to fall significantly until:
- Full reopening of Hormuz is confirmed
- Supply chains stabilise
- Geopolitical tensions ease materially
Investor Takeaways
- Oil prices rebounded after a historic 13% drop, reflecting ongoing market volatility.
- The Strait of Hormuz disruption remains the central driver of global energy prices.
- Supply recovery may take weeks or longer, even if shipping resumes.
- The ceasefire remains fragile, with continued regional conflict risks.
- Oil prices are likely to stay elevated above US$90, supporting energy markets but increasing inflation risks.
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