KLCI sheds 35.68pts to below 1,700

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KUALA LUMPUR (Dec 15): The FBM KLCI declined 35.68 points or 2.06% as concerns over declining global crude oil prices weighed on investors.

At 5pm, the KLCI closed at 1,697.31 points on losses in stocks like Kuala Lumpur Kepong Bhd (KLK) and Petronas Dagangan Bhd. The KLCI had earlier reached an intra-day low of 1,695.60 points.  

Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com that as long oil prices did not rebound, investors would continue to sell their shares in the market.

Reuters reported global share prices came under pressure on Monday as oil prices briefly sank to fresh 5-1/2 year lows in choppy trade.

US crude futures fell more than 2.5% at one point to as low as US$56.25 per barrel before rising back to positive territory. They were last up 1% at US$58.40.

Wong said : “However, there are very selected counters, which will benefit from the downward cycle in oil prices, such as those with risk contracts in brownfield projects, which will be good for bargain hunters to buy into as a mid to long-term strategy buy.

“Investor confidence in the market is also shaky. Earnings growth has been lower this year and there are no catalysts at the moment,” Wong said.

For comparison, Japan's Nikkei 225 closed 1.57% lower while Hong Kong's Hang Seng Index lost 0.95%

Across Bursa Malaysia, 2.06 billion shares were traded for a total value of RM2.32 billion.

Losers trumped gainers by 1,010 to 66 counters respectively while 858 counters remained unchanged.

KLK led decliners while British American Tobacco (M) Bhd was the top gainer.

Most active were oil and gas-related entities Sumatec Resources Bhd and SapuraKencana Petroleum Bhd.