Trading volume tops 27 billion at new record high, while KLCI heads lower

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KUALA  LUMPUR (Aug 11): The FBM KLCI closed down 6.92 points or 0.44% at 1,564.74 today while trading volume across Bursa Malaysia rose to another record peak at 27.8 billion securities against a confluence of factors including global crude oil and equity price gains.

At 5pm, Bursa saw 27.8 billion securities traded for RM7.8 billion. There were 722 decliners versus 552 gainers across the bourse.

The Energy Index, which tracks shares in oil and gas-related firms, rose 12.27% to become the top percentage gainer among Bursa gauges while Sapura Energy Bhd was the most-active stock across the exchange with a record-high volume of over four billion shares.

Areca Capital Sdn Bhd chief executive officer Danny Wong noted that Bursa's trading volume mostly comprised transactions of penny stocks.

Although share volume was high, total trading value only stood at RM7.8 billion, he said.

"I think the market is not certain about the direction. It's typically the retailers in the market taking profit after making a handsome gain. There has also been rotational play and today it's on oil and gas counters," he told theedgemarkets.com.

Wong said the local stock market is expected to remain volatile with high trading volume as retail investors dominate the trading ground.

Prices of oil and gas counters including Sapura Energy Bhd and Velesto Energy Bhd closed higher among Bursa most-active stocks. Top-active stock Sapura Energy’s trade volume spiked to an all-time high of 4.13 billion shares. The stock's price ended 4.5 sen or 45% higher at 14.5 sen, after rising to its intraday high of 17.5 sen, in tandem with global crude oil and equity price gains.

It was reported that crude oil gained more ground on Tuesday, with prices underpinned by expectations of US stimulus and a rebound in Asian demand as economies reopen. It was reported that Brent crude added 22 cents or 0.5% to US$45.21 a barrel as of 0441 GMT, while West Texas Intermediate US crude rose 32 cents or 0.8% to US$42.26 a barrel.

It was reported that world equities inched to 5½-month highs on Tuesday, lifted by bets the US fiscal stimulus package will be reached and by signs Sino-US tensions have eased ahead of a crucial round of trade talks.

"Crude oil gained amid signs of further stimulus measures. US lawmakers continued negotiations on the massive virus relief economic package with Treasury Secretary Steven Mnuchin, saying there are areas where compromise is possible and a fair deal could be agreed upon. Sentiment was also boosted by comments from Saudi Aramco that demand is improving,” Reuters quoted ANZ as saying in a note.