KLCI up 12pts/0.7% as O&G, plantation shares rise

noon_market_up_theedgemarkets

-A +A

KUALA LUMPUR (Oct 17): The FBM KLCI, deemed ripe for a technical rebound, rose 12.49 points or 0.7% from a 13-month low at market close yesterday. The rise came as higher crude oil prices prompted investors to accumulate oil and gas (O&G), and plantation shares.

At 12.30pm, the KLCI settled at 1,780.26, still below the "psychological" level of 1,800 points. The KLCI rose on gains in stocks like SapuraKencana Petroleum Bhd and plantation entities like Felda Global Ventures Holdings Bhd and Sime Darby Bhd.

Yesterday, the KLCI fell 19.07 points or 1.07%. Today, analysts said while the index's technical rebound was expected, the gains might not be sustainable.
 
Hong Leong Investment Bank Bhd wrote in a note today this was on account of global markets’ swings, and anticipation of brokers’ forced selling and margin calls after the recent meltdown.

Bursa Malaysia saw some RM1.12 billion shares worth RM939 million changed hands. There were 700 gainers versus 136 decliners.

The top gainer was United Plantations Bhd while the leading decliners included Tahps Group Bhd and Asia Brands Corp.

The most active stock was Sumatec Resources Bhd, which is also an oil and gas entity.

Across Asia, Japan's Nikkei 225 fell 1.02% while while Hong Kong's Hang Seng added 0.13%

Reuters reported oil got some respite on Friday from a four-month rout, with Brent climbing by almost a dollar to above US$86 a barrel after positive U.S. data buoyed global financial markets, although market analysts doubted the rally would take it much higher.

Asian stocks clawed back some of this week's losses on Friday after a solid set of U.S. data calmed turbulence in global financial markets, though underlying worries about slowing world economic growth kept investors on edge.