FBM KLCI climbs above 1,800pts after crude oil prices rose overnight

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KUALA LUMPUR (Aug 23): The FBM KLCI climbed above 1,800 points as oil and gas-related shares gained after world crude oil prices rose 3% overnight.

At 9am, the KLCI opened 3.49 points or 0.19% higher at 1,801.60. At 9:19am, the KLCI rose 6.63 points to 1,804.74 as KLCI-linked stocks Petronas Dagangan Bhd and Petronas Gas Bhd emerged among Bursa Malaysia top gainers.

Hong Leong Investment Bank Bhd wrote in a note today that "oil and gas stocks could see potential buying support amid a jump in crude oil prices yesterday."

Overnight, Reuters reported that oil prices rose 3% on Wednesday, with Brent crude futures hitting a three-week high, after U.S. government data showed a larger-than-expected draw in crude inventories and as Washington's sanctions on Iran signaled tightening supplies.

It was reported that Brent crude futures rose US$2.15, or 3%, to settle at US$74.78 a barrel. The global benchmark reached US$75.00 during the session, the highest since July 31. U.S. West Texas Intermediate crude futures rose US$2.02 to settle at US$67.86 a barrel, a 3.1% gain.