KUALA LUMPUR (April 22): The FBM KLCI pared some of its loss mid-morning today, but was still down 1.44% as broader market sentiment was battered by the weak crude oil prices and pandemic fears gripping the world.

Reuters said oil prices found some respite on Wednesday as US oil futures rose more than 20% and Brent prices steadied after a two-day price plunge, as markets struggle with a massive crude glut amid the coronavirus outbreak.

Brent crude, which settled down 24% in the previous session, was up 4 cents at US$19.37 a barrel after rising more than US$1 earlier, it said.

At 10am, the FBM KLCI was down 19.62 points to 1,362.11. The index had earlier fallen to a low of 1,359.79.

All the indices on Bursa Malaysia were mired in the red as broader market sentiment stayed negative as losers thumped gainers by 599 to 97, while 215 counters traded unchanged. Trading volume was 1.33 billion shares valued at RM555.59 million.

The top losers included Nestle (M) Bhd, Panasonic Manufacturing Malaysia Bhd, Heineken Malaysia Bhd, Carlsberg Brewery Malaysia Bhd, United Plantations Bhd, PPB Group Bhd, Kuala Lumpur Kepong Bhd, Hong Leong Financial Group and KESM Industries Bhd.

The actives included Hibiscus Petroleum Bhd, Sapura Energy Bhd, AirAsia X Bhd, Comfort Gloves Bhd, Velesto Energy Bhd and Lambo Group Bhd.

The gainers included Top Glove Corp Bdh and Malaysia-listed Hang Seng Index-linked put warrants.

Bloomberg said Asian stocks retreated Wednesday after a risk-off session on Wall Street, amid continued volatility in energy markets and further signs companies are finding it hard to provide outlooks. Crude edged up after a two-day tumble.

Shares fell in Tokyo, Seoul and Sydney though declines were shallower than those in the US on Tuesday. S&P 500 futures were little changed after the gauge closed down more than 3%, with investors shrugging off a deal reached by the White House and congressional leaders on fresh spending to combat the impact of the coronavirus pandemic. June crude futures rose as much as 20%, after tumbling more than 50% over the previous two sessions. The yield on benchmark 10-year Treasuries was steady after dropping below 0.6%, the newswire said.

Hong Leong IB Research said with the second day of sharp selloffs on Dow and the unprecedented plunge in oil prices coupled with technically negative outlook, KLCI is expected to experience more downward consolidation today (with key supports at 1,340-1,350).

“We reiterate we continue to advocate selling on strength as we roll into May as the economic reality should start to sink in soon due to concerns about weaker corporate earnings and relatively expensive valuations coupled with potential extension in after the phase 3-MCO ending on April 28,” the research house said.