FBM KLCI volatile after starting higher

-A +A

KUALA LUMPUR (Jan 24): The FBM KLCI opened higher today before vacillating between losses and gains after crude oil prices fell overnight and as investors closely watched the impact of the China-US trade war on world economic growth.

At Bursa Malaysia today, the KLCI opened up 0.62 point at 1,688.76 at 9am. At 9:05am, the KLCI fell 0.64 point to 1687.50. At 9:14am, the index rose 1.59 points to 1,689.73.

Across Bursa Malaysia, top gainers at 9:21am included Fraser & Neave Holdings Bhd (F&N) while leading decliner included Genting Malaysia Bhd. F&N rose 10 sen to 
RM34.20 while Genting Malaysia fell four sen to RM3.22.    

On the KLCI, Affin Hwang Investment Bank Bhd wrote in a note today : "If we look at the price action last week, selling pressure seen in the index was quickly snuffed out. This indicates a present of buyers at current levels."

"Global equities are poised to end the week higher as well especially in the US where major indexes are already up at least 3% this year. Trade talks are also progressing in the right direction with the latest news stating that China has offered a 6-year increase in US imports in recent trade talks, aiming to reduce the annual US deficit to zero by 2024. Hopefully, this would lift sentiments locally, prompting investors to start pouring funds back into our local market," Affin  said.

Crude oil prices fell overnight on Wednesday. Reuters reported that oil prices slipped on Wednesday as the European Union seeks to circumvent US trade sanctions against Iran, and on weaker US gasoline prices. It was reported that Brent futures fell 36 cents, or 0.6 percent, to settle at US$61.14 a barrel, while the most-active US West Texas Intermediate crude contract for March fell 39 cents, or 0.7 percent to settle at US$52.62.