KLCI up on global oil price rebound

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KUALA LUMPUR (Feb 4): The FBM KLCI closed 1.22% or 21.67 points higher after Bursa Malaysia reopened for trading following a two-day break, thanks to a rebound in global oil prices.

At 5pm, the benchmark index settled at 1803.02, after some 2.41 billion shares worth RM2.69 billion were traded.

Danny Wong, CEO of Areca Capital Sdn Bhd told theedgemarkets.com that Bursa’s gains today was a result of the recovery of global oil price.

“The KLCI trended upwards today. This was mainly due to the recovery of oil price to above US$50 a barrel. As a result, there is a recovery in our stock market on a broader basis. In line with that, we also saw many oil and gas counters’ share prices go upwards,” he said.

While a longer term outlook is “tough to forecast”, Wong expects global oil price recovery to be gradual.

He also anticipates a sell down by retailers just before the Chinese New Year holidays as they seek to “manage their risks” in the stock market.

“Some retailers will start to sell down the week before Chinese New Year. This is more to do with risk management when the Malaysian stock market is closed. This limits their exposure to what is happening in foreign markets, which may affect Malaysia,” he said.

Today, Bursa Malaysia saw 467 gainers outnumbered 399 decliners, while 318 counters remained unchanged.

Among the biggest gainers were Brtish American Tobacco (Malaysia) Bhd which rose 2.27%, Nestle (Malaysia) Bhd which was up by 1.26% and Petronas Dagangan Bhd which gained 1.93%.

On the other hand, the top decliners were Syarikat Takaful Malaysia Bhd which lost 2.03%, Hong Leong Capital Bhd which fell 1.6%, and Sarawak Oil Palms Bhd which lost 3.21%.

Bursa Malaysia’s most actively traded stock today was Asia Bioenergy Tech Bhd which saw 172.32 million shares, worth RM36.76 million, changed hands. The counter closed at 18.5 sen, down 6 sen.

Regionally, Japan’s Nikkei rose 1.98 %, Hong Kong’s Hang Seng was higher by 0.51% and South Korea’s Kospi was up 0.55%.