KUALA LUMPUR (Sep 20): The FBM KLCI closed up 2.99 points or 0.17% at 1,803.7 points as the China-US trade war appeared less harsh than expected. Global crude oil price gains also improved sentiment on shares of Malaysian oil and gas companies.
Reuters reported that a bounce in world stocks in relief that the fresh US and Chinese tariffs on reciprocal imports were less harsh than feared continued on Thursday, although investors remained wary about the next steps in the US-Sino trade war.
It was also reported that oil prices rose on Thursday after news of another drawdown in US crude inventories and on signs that OPEC may not raise production enough to compensate for the loss of Iranian exports hit by US sanctions. Benchmark Brent crude was up 20 cents at US$79.60 by 0740 GMT, its third day of gains. US light crude oil was 40 cents higher at US$71.52 a barrel, after rising nearly 2 percent on Wednesday.
In Malaysia today, Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com that the Malaysian stock market moved in tandem with regional markets along with news related to the China-US trade war.
"At this point, the local market is still driven by the progress of the trade war. This will be the case until there are some resolutions made pertaining to the trade war," Wong said.
Shares of Bursa Malaysia-listed oil and gas companies rose to top the bourse's most active stocks. At 5pm, Sapura Energy Bhd closed one sen higher at 44 sen with some 134 million shares traded.
Hibiscus Petroleum Bhd added eight sen at RM1.09 with about 79 million shares transacted.