KLCI rises in early trade, oil and gas stocks to the fore

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KUALA LUMPUR (Sept 17): The FBM KLCI started on a positive note this morning, with oil and gas-related stocks leading the advancers, on the back of the attacks on Aramco’s oil facilities.

At 9.10am, the FBM KLCI added 4.03 points to 1,605.28.

The early gainers included Petronas Dagangan Bhd, Hengyuan Refining Company Bhd, Petron Malaysia Refining and Marketing Bhd, Petronas Gas Bhd, Petronas Chemicals Group Bhd, KESM Industries Bhd, MISC Bhd, Deleum Bhd, SAM Engineering & Equipment Bhd and Hong Leong Bank Bhd.

Oil futures shed some of their massive gains on Tuesday as the United States flagged the possible release of crude reserves, but the threat of military action over the attacks on Saudi oil facilities kept prices elevated and stocks under pressure, according to Reuters.

While equity market losses have not been large, the shaky investor confidence continues to support safe-haven assets, with gold edging higher on Tuesday and Treasury prices rising, it said.

Kenanga IB Research said Asian stocks were mostly higher, given the US-China trade worries that have subsided while investors saw the ECB interest rate cut as a positive.

It said back home, the FBMKLCI gained marginally by 0.25 points or 0.02% to close at 1,601.25.

“Chart-wise, the underlying trend of the index remains bearish as the index remains below 50-  and 100-day SMAs, due to lack of market catalyst.

“Should the selling pressure persist, key support levels can be seen at 1,570 (S1) and 1,550 (S2).

“Conversely, overhead resistance levels can be found at 1,630 (R1) and 1,650 (R2),” it said.