KLCI higher on O&G, plantation gains as ringgit strengthens

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KUALA LUMPUR (Jan 27): The FBM KLCI gained 6.73 points or 0.37% to settle at 1,803.17 as oil and gas (O&G), and plantation shares rose on reports that crude oil prices could have bottomed out.

The KLCI settled at 1,803.17 at 5pm on gains in O&G stocks like Petronas Dagangan Bhd and Petronas Chemicals Bhd, besides plantation entities Felda Global Ventures Bhd and PPB Group Bhd.

“Gains in blue chip O&G counters like Petronas Dagangan and Petronas Chemicals had supported the index’s rise today,” Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com

The KLCI ended in positive territory after clawing back from an intraday low of 1,788.55.

O&G shares rose following reports, quoting Organization of the Petroleum Exporting Countries (Opec) officials, that crude oil prices could have found a floor.

Reuters quoted Opec secretary-general Abdullah al-Badri as saying oil prices might have bottomed out and he warned of a risk of a future jump to $200 a barrel if investment in new supplies was too low.

Meanwhile, the ringgit also reacted to the Opec's comments, strengthening to RM3.6007 versus the US dollar. Compared to the Singapore dollar, the ringgit was traded at 2.6835.

Bursa Malaysia saw 2.02 billion shares valued at RM2.17 billion traded. Gainers edged decliners at 447 versus 366 while 314 counters were unchanged.

Leading the gainers was Petronas Dagangan, while Allianz Malaysia Bhd headed decliners. The most-actively traded stock was Sanichi Technology Bhd.

Across Asia, South Korea’s Kospi gained 0.86% while Hong Kong’s Hang Seng fell 0.41%.

In Japan's, the Nikkei 225 rose 1.72%.

According to Reuters, most Asian share markets firmed on Tuesday and the euro clung to rare gains, relieved that European equities had weathered Greece's election outcome without too much disruption.