KLCI falls 20.95pts as oil prices dent sentiment

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KUALA LUMPUR (Dec 11):  The FBM KLCI skidded to end  20.95 points or 1.19 %  lower as crude oil prices dented investor sentiment.

At 5pm, the KLCI closed at 1,744.57 points on losses in oil and gas-related stocks like Petronas Dagangan Bhd and Petronas Gas Bhd. Both stocks were Bursa Malaysia's top decliners.

Yesterday, the KLCI rose 27.42 points or 1.58%.

Today, a remisier told theedgemarkets.com that the KLCI was reacting to global oil prices, retreating and advancing with the commodity's prices.

“The market is actually taking signals from the oil price movements. Generally, when oil prices are down, investors take it as a negative sign and start a selldown.  When oil prices improve, investors are more bullish and will start to buy.

“Unfortunately, the market is now volatile and the visibility in terms of how the KLCI will move for the next few days is not there because sentiment and not reason is prevailing,” he said.

Across Bursa Malaysia, 626 decliners overran 178 gainers while 243 counters where unchanged. Some 1.23 billion shares valued at RM1.5 billion traded.

Main board newcomer EA Technique (M) Bhd was the most actively traded counter

EA Technique ended its first trading day lower at 48.5 sen compared to its initial public offering price of 65 sen. Some 54 million shares changed hands.

Top gainers included United Plantations Bhd and Fraser & Neave Holdings Bhd