KLCI falls 0.4% as O&G stocks beaten down

noon_market_down_theedgemarkets

-A +A

KUALA LUMPUR (Nov 28): The FBM KLCI reduced losses for a 0.4% decline as oil & gas (O&G) counters took a beating. O&G shares fell following the decision by global major crude oil producers to not cut output.

At 12.30pm, the KLCI fell 7.62 points to 1,822.29 on losses in shares of SapuraKencana Petroleum Bhd, Petronas Dagangan Bhd and Petronas Chemicals Group Bhd.

The KLCI had earlier fallen to an intraday low of 1,815.31.

Oil prices, oil-related shares and oil-linked currencies all tumbled in Asia on Friday, in the wake of the Organization of Petroleum Exporting Countries' (Opec) decision to refrain from cutting output despite a huge oversupply, according to Reuters.

US markets were closed on Thursday for the Thanksgiving holiday, leaving the spotlight on Opec's meeting in Vienna where Saudi Arabia blocked calls from poorer cartel members to cut production to stem a slide in global prices.

Today, Brent crude oil slipped to $72.48.

In Malaysia, analysts said the outlook for the KLCI remained negative following sliding oil prices.
 
“The KLCI will continue to trap in a consolidation mode. We reiterate that only a decisive breakout above 1,850 points will spur the index higher towards 1,865 levels," said Hong Leong Investment Bank analyst Nick Foo Mun Pang in a note today.
 
Across Bursa Malaysia, some 1.01 billion shares worth 822.4 million were traded. Market gainers trailed decliners by 166 versus 549 while 272 counters remained unchanged.

The top decliner was Petronas Dagangan while the top gainer was United Plantations Bhd.

The most-active counter was O&G entity Sumatec Resources Bhd.