KLCI closes higher on crude oil

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KUALA LUMPUR (Oct 11): The FBM KLCI rose 3.4 points or 0.2% after crude oil prices climbed as much as 3% on Monday. Crude oil prices rose after Russia indicated it was ready to join Organization of the Petroleum Exporting Countries' planned crude oil production curb to support prices.

As 5pm today, the KLCI settled at 1,668.72 points as stocks like SapuraKencana Petroleum Bhd, Perisai Petroleum Teknologi Bhd and Bumi Armada Bhd rose among Bursa Malaysia's most-active stocks.

Reuters reported that on Monday, Brent crude hit its highest level since Oct 9, 2015, reaching US$53.73 (RM224.48) a barrel, before paring gains to settle US$1.21 or 2.3% higher at US$53.14 a barrel.

US West Texas Intermediate crude rose to its highest since June 9 at US$51.60, before easing to end the session at US$51.35, up US$1.54 or 3.1%.

In Malaysia today, Malacca Securities Sdn Bhd technical analyst Loui Low Ley Yee told theedgemarkets.com that oil and gas (O&G) shares tracked crude oil price gains.

"The market (KLCI) closed higher, tracking the positive sentiment in Wall Street as a result of the oil price rally. We are seeing some recovery in the O&G counters with oil prices above the US$50 (a barrel) level," he said.

Across Bursa Malaysia, 1.56 billion shares worth RM1.89 billion changed hands. There were 440 gainers and 324 decliners.

Low said the volume was lower than the KLCI's three-month average at about 1.8 billion shares. "People are still cautious. The market is likely to be still in the accumulation phase, being selective in their investment in the time being," Low said.