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Bursa rebounds as Middle East tension fueled US energy stocks

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Syndicated News
Written by Syndicated News

KUALA LUMPUR, June 14 2019 : Bursa Malaysia opened on a firm note today, taking the cue from an overnight rise on Wall Street as soaring tension in the Middle East saw US energy stocks made a strong rebound.

Oil futures jumped after two oil tankers were damaged in suspected attacks in the Gulf of Oman, near Iran and Strait of Hormuz which prompted concerns about supply disruption, dealers said.

At 9.07 am, the key FTSE Bursa Malaysia KLCI (FBM KLCI) was 1.71 points better at 1,645.45  from 1,643.74 at 5 pm yesterday.

The barometer index opened 5.68 points higher at 1,649.42.

Market breadth was positive as gainers led losers 141to 84, with 175 counters unchanged, 1,480 untraded and 34 suspended.

Turnover stood at 102.88 million worth RM64.96 million.

Malacca Securities Sdn Bhd said the local market was still in overbought condition impending a pullback, coupled with fewer buying impetuses from domestic sources following the conclusion of the most recent corporate results reporting season.

It said going into the final trading day of the week, conditions remain toppish on the key index that may continue to dent market interest.

“Rising geopolitical concerns in the Middle East and the unresolved trade dispute between the US and China will leave sentiments on the wary side.

“Therefore, we think the key index is likely to continue drifting over the near term with the downside bias still prevalent, possibly sending the FBM KLCI back to the 1,640 level. Further below, the support is at the 1,636 level, while the resistances are at the 1,650 and 1,657 levels,” it added.

Among heavyweights, Public Bank shed four sen to RM23.38, Tenaga fell eight sen to RM12.24 and CIMB eased one sen to RM5.31. 

Petronas Chemicals gained two sen to RM8.33,  while Maybank was flat at RM8.96.

Of the actively-traded stocks, Greatech gained 6.5 sen to 80.5 sen, Ekovest edged up half-a-sen to 84.5 sen, Iskandar Waterfront added one sen to RM1.00, Econpile gained 1.5 sen at 74.5 sen with Econpile warrant was flat at 26.5 sen.

The FBM Emas Index gained 13.45 points to 11,622.03, the FBMT 100 Index increased 13.20points to 11,467.44 and the FBM Emas Shariah Index added 10.32 points to 11,844.31.

 The FBM 70 perked 21.90 points to 14,480.13 while the FBM Ace shed 25.22 points to 4,399.32.

Sector-wise, the Financial Services Index was 12.59 points higher at 16,818.94 and the Industrial Products & Services Index added 0.73 of-a-point to 161.37, but the Plantation Index slipped 4.84 points to 6,875.94.  – Bernama

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Syndicated News

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News sourced from Bernama, Reuters, AFP and other accredited news agencies, including credible blogsites and news portals.