KLCI jumps as crude oil steadies above US$40/barrel

KLCI jumps as crude oil steadies above US$40/barrel
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KUALA LUMPUR (Oct 9): The FBM KLCI jumped more than 10 points in Bursa Malaysia afternoon trades today, partly helped by gains in oil and gas-related shares like MISC Bhd and Petronas Dagangan Bhd as crude oil prices steadied above US$40 a barrel after substantial overnight rise.

Across Bursa at 3:57pm today, 5.59 billion securities were traded for RM2.23 billion.

The KLCI rose 10.49 points or 0.69% to 1,529.92.

Globally, it was reported that crude oil prices eased on Friday, slipping at the end of a week of big gains made on the risk that supplies from Norway could be slashed by up to 25% due to a strike by oil workers.

It was reported that Brent was down by 14 cents at US$43.20 a barrel by 0740 GMT, having gained more than 3% on Thursday while US West Texas Intermediate crude dropped 13 cents to US$41.06 after also gaining more than 3% on Thursday.

"Both contracts are on track for gains of around 10% this week — the first rise in three weeks — as prices rallied in response to Norwegian oil workers taking strike action. Norwegian oil company and labour officials said they will meet with a state-appointed mediator on Friday in an attempt to bring an end to a strike.

"Elsewhere, market watchers are also bracing for the impact on US production of Hurricane Delta, forecast to strike the Gulf Coast within hours. Nearly 1.5 million barrels of daily output has been halted so far,” Reuters reported.

At Bursa today, MISC, which provides petroleum shipping services, saw its share price rise 17 sen or 2.45% to RM7.10 at 4:02pm.

At 4:03pm, Petronas Dagangan fell two sen or 0.1% to RM19.64 after rising to its highest so far today at RM19.74.