KUALA LUMPUR: Bursa Malaysia finished Thursday’s trading on a positive note, erasing yesterday’s losses over a possible cut in oil price as the Organisation of the Petroleum Exporting Countries (OPEC) and its allies are set to meet virtually to cut production.
Brent crude oil rose by 2.89% to US$33.79 per barrel.
At 5pm, key index FTSE Bursa Malaysia KLCI (FBM KLCI) added 8.37 points or 0.615% to 1,369.76 from 1,361.39 at Wednesday’s close.
The index opened 7.5 points higher at 1,368.89 and moved between 1,366.53 and 1,371.35 throughout the day.
Market breadth remained positive with gainers thumping losers 634 to 252, while 374 counters were unchanged, 669 untraded and 20 others suspended.
Turnover decreased to 4.71 billion shares worth RM2.25 billion from 5.36 billion shares worth RM2.66 billion at yesterday’s close.
News on expectations of a cut in oil supplies amid lower demand became the catalyst driving the stock markets globally.
Bank Islam chief economist Mohd Afzanizam Abdul Rashid said oil and gas related stocks were the most actively traded in the exchange today.
The top three oil and gas stocks that were actively traded were Bumi Armada, rising one sen to 19.5 sen, Sapura Energy adding half-a-sen to 11 sen and Hibiscus Petroleum climbing two sen to 52.5 sen.
“In addition, US President Donald Trump’s announcement on the possible reopening of the economy seems to indicate all the pump priming measures and the super low interest rates should have a significant impact to the economy, once economic activities begin to normalise,” he told Bernama.
However, he said sentiments are still fragile and global demand for oil is expected to be weak in light of the possible global recession.
Mohd Afzanizam said last year, 80% of the total growth in global oil demand was associated with China and this year China is likely to be struggling to achieve a respectable growth rate in view of the Covid-19 pandemic.
Therefore, the sustainability of Brent crude oil price remains highly uncertain, he added.
Of the heavyweights, Sime Darby Plantation jumped 19 sen to RM4.95, Digi added eight sen to RM4.52, Hartalega gained 17 sen to RM7.44 and Tenaga was 10 sen higher at RM12.04.
Altogether these counters contributed 5.572 points to the composite index.
On the index board, the FBM Emas Index appreciated 58.64 points to 9,469.91, the FBMT 100 Index increased 54.09 points to 9,360.80 and the FBM Emas Shariah Index rose 81.63 points to 10,404.08.
The FBM 70 added 50.93 points to 11,051.43 and the FBM ACE surged 94.03 points to 4,179.70.
Sector-wise, the Financial Services Index gained 76.65 points to 12,475.12, the Industrial Products and Services Index inched up 1.22 points to 110.44 and the Plantation Index was 108.09 points higher at 6,283.85.
Main Market volume narrowed to 3.42 billion shares valued at RM2.03 billion from 3.99 billion shares valued at RM2.43 billion on Wednesday.
Warrants turnover increased to 399.12 million units worth RM90.73 million versus 329.02 million units worth RM65.62 million.
Volume on the ACE Market decreased to 890.33 million shares valued at RM124.71 million compared with 1.04 billion shares valued at RM161.31 million.
Consumer products and services accounted for 487.62 million shares traded on the Main Market, industrial products and services (433.27 million), construction (366.21 million), technology (325.07 million), SPAC (nil), financial services (50.33 million), property (297.24 million), plantations (60.02 million), REITs (12.05 million), closed/fund (8,300), energy (1.16 billion), healthcare (35.83 million), telecommunications and media (52.69 million), transportation and logistics (101.80 million), and utilities (35.59 million). - Bernama
