Bursa volume revisits nine billion unit mark on crude oil price gain

Bursa volume revisits nine billion unit mark on crude oil price gain
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KUALA LUMPUR (May 15): The FBM KLCI today closed 6.19 points or 0.44% higher as global crude oil price gains offered an impetus to Bursa Malaysia's oil and gas (O&G)-related shares' price and volume rises, which propelled securities trade across the bourse above nine billion units again.

At 5pm, the KLCI closed at 1,403.44 points, while volume across Bursa rose to 9.23 billion securities worth RM3.87 billion as O&G-related companies' share prices rose among the top gainers and most active stocks. 

KNM Group Bhd and Hibiscus Petroleum Bhd topped the most active list, while Petronas Gas Bhd (PetGas) and MISC Bhd ended among the top gainers after oil prices jumped more than 3% today, touching more than one-month highs amid signs that demand for crude was picking up with China reporting increased refinery runs, rounding out a week of bullish news on the supply front.

"Brent crude was up US$1.21, or 3.9%, at US$32.34 (RM140.71) a barrel by 0707 GMT after touching US$32.44, the highest since April 14. Brent rose nearly 7% yesterday and is heading for a 3% gain for the week after rising the previous two weeks.

"West Texas Intermediate (WTI) oil was up 92 cents, or 3.3%, at US$28.48 a barrel after reaching US$28.54, the highest since early April. WTI jumped 9% in the previous session and is also heading for a third weekly increase, up about 15%,” Reuters reported.

In Malaysia, Inter-Pacific Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com that "higher oil prices offered impetus for Petronas stocks”.

Top active stock KNM ended with a volume of some 673 million shares. The stock’s price closed up three sen or 20% at 18 sen.

PetGas’ share price rose 24 sen or 1.6% to RM15.28.

Across Bursa today, volume rose to 9.23 billion securities from 7.01 billion units yesterday. On Wednesday, trade volume across Bursa closed higher at an all-time high of 9.59 billion units as the spectre of a resurgence of the Covid-19 outbreak dictated world stock market sentiment.

Today, Wan said “everything is very fluid at this point”, depending on how the pandemic pans out.