KLCI rises as CPO futures top RM3,000

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KUALA LUMPUR (Sept 18): The FBM KLCI settled up 6.73 points or 0.44% at 1,519.8 at Bursa Malaysia's afternoon break today as crude palm oil (CPO) futures rose past RM3,000 a tonne amid higher crude oil prices.

Across Bursa at 12.30pm, 3.88 billion securities were traded for RM2.39 billion.

Top gainers included KLCI stocks Petronas Dagangan Bhd and Kuala Lumpur Kepong Bhd (KLK) as investors took cue from higher crude oil prices, which generate expectation of more demand for CPO to produce biodiesel.

Leading gainer Petronas Dagangan’s share price settled up 50 sen or 2.46% at RM20.82 while KLK added 20 sen or 0.88% to RM22.90.

CPO for October 2020 setttled up RM73 at RM3,078 a tonne while CPO for November 2020 rose RM80 to RM3,076.

In crude oil markets, it was reported that crude oil held sharp gains after the Organization of the Petroleum Exporting Countries (OPEC) and its allies said the group would take action on members that are not complying with deep output cuts.

Brent crude futures were last 0.2% firmer at US$43.39 a barrel and US crude futures rose by the same margin to US$41.04 a barrel, Reuters reported.

As investors weighed the impact crude oil and CPO prices would have on equities, they were still mindful of the Covid-19 pandmemic and its effects on the rubber glove and healthcare industries.

Covid-19 has generated expectations of higher demand for rubber gloves to curb the spread of the pandemic besides expectations of Covid-19 vaccines to prevent future infections.

"The local market should extend profit-taking consolidation ahead of the weekend, as investors digest the outlook for the rubber glove and healthcare industries in the face of acceleration in vaccine developments," TA Securities Holdings Bhd wrote in a note today.