FBM KLCI Gains On Oil Supply Hopes Amid Middle East Tensions
The FBM KLCI closed higher as improving market sentiment, boosted by reports of a potential record oil stock release by the International Energy Agency (IEA), lifted investors’ risk appetite.
CIMB Securities noted that the benchmark index settled 7.1 points, or 0.42%, higher at 1,708.78, after touching an intraday high of 1,709.93, with banking shares contributing to the gains.
There were 605 gainers, 447 losers and 525 counters traded unchanged on Bursa Malaysia. Turnover stood at 2.71 billion shares valued at RM2.8 billion.
Reports that the IEA is considering the largest-ever coordinated release of strategic oil reserves eased concerns over supply disruptions amid the U.S.-Israel war involving Iran. Stephen Innes, managing partner at SPI Asset Management, said Asian equities and global futures steadied as crude prices held just below the psychologically important US$90 per barrel level. “The US$90 mark has become a key pressure point for markets this week, as prices below that level tend to support risk sentiment, while a break above it could quickly tighten financial conditions,” he noted.
Among gainers on Bursa Malaysia, Carlsberg rose 48 sen to RM17.46, PETRONAS Dagangan added 40 sen to RM21.90, United Plantations gained 38 sen to RM31.64 and Chin Teck Plantations climbed 26 sen to RM10.80. In contrast, Nestle fell RM1.10 to RM102.90, Malaysian Pacific Industries dropped 56 sen to RM29.98, QL Resources lost 13 sen to RM3.89 and Pentamaster declined 12 sen to RM3.08.
Foreign funds and retail investors were net sellers, offloading equities worth RM101 million and RM5 million respectively, while local institutions were net buyers at RM105 million.
The ringgit strengthened 0.23% against the US dollar to 3.9150 and 0.33% against the Singapore dollar to 3.0732.
Regional bourses mostly advanced, with Japan’s Nikkei 225 up 1.43% and South Korea’s Kospi rising 1.4%, while Singapore’s Straits Times Index and Hong Kong’s Hang Seng slipped slightly.
