KLCI falls 14pts on crude oil price drop

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KUALA LUMPUR (Nov 28): The FBM KLCI fell 14.21 points or 0.8% as investors sold oil and gas (O&G)-related shares. This followed a sharp decline in crude oil prices after major world producers decided not to cut output.

At 9.02am, the KLCI was traded at 1,815.70 on losses in stocks like SapuraKencana Petroleum Bhd and Petronas Dagangan Bhd.

Analysts said investors might switch to defensive stocks in other sectors amid the current market backdrop.

"We expect further consolidation for the local bourse and believe investors will switch to defensive stocks such as telco, consumer and healthcare with 1,820 as the immediate support for today," BIMB Securities Sdn Bhd wrote in a note today.

Bursa Malaysia saw some 74 million shares worth RM44 million changed hands. There were 54 gainers versus 147 decliners.

The top gainer was United Plantations Bhd while Puncak Niaga Holdings Bhd led decliners.

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

Reuters reported that Brent crude oil plunged as much as US$6.50 a barrel on Thursday, and US crude fell by nearly as much, posting the steepest one-day falls since 2011.

Prices fell after the Organization of Petroleum Exporting Countries (OPEC) decided against cutting output despite a huge oversupply in world markets.

Benchmark Brent futures settled at US$72.58 a barrel, down US$5.17, after hitting a four-year low of US$71.25 earlier in the session. US crude was last down US$4.64 at US$69.05 a barrel.