KUALA LUMPUR (Dec 5): The FBM KLCI staged a mild rebound today to finish 3.68 points or 0.21% higher at 1,749.37 points, after two consecutive sessions of sell down on lower crude oil prices.
The benchmark index opened slightly lower at 1,743.40 and moved between 1,755.94 and 1,740.56 throughout the day. Gainers outpaced losers by 459 to 330, while 308 counters were unchanged on Bursa Malaysia.
Turnover was at 1.401 billion shares valued at RM1.802 billion.
Stocks like Tenaga Nasional Bhd (TNB), Petronas Dagangan Bhd, LPI Capital Bhd and Hong Leong Financial Group Bhd were among the top gainers today.
“I think the rebound was due to the oversold in the market in the past two sessions,” Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com, adding that TNB was the counter that led the rebound in the local index today.
Despite the fuel subsidy cut, Wong opined that the low crude oil prices would continue to benefit TNB.
TNB gained 3.82% or 50 sen today to settle at RM13.60, with 12.46 million shares traded. The benchmark Brent crude oil was traded at US$69.21 per barrel at the time of writing.
On the overall market sentiment, Wong warned: “The dust has not settled yet”, implying that the market would see further sell down should oil prices remain under pressure.
Yesterday, the FBM KLCI fell 12.46 points or 0.7% as bearish sentiment triggered by lower crude oil prices persisted. Lower crude oil prices have led to concerns over the Malaysian government finances.
Sumatec Resources Bhd was the most actively traded stock by volume. The counter closed 2.17% lower at 22.5 sen, with 4.41 million shares changing hands.
Top gainers included Carlsberg Brewery Malaysia Bhd and consumer counters Dutch Lady Milk Industries Bhd and Fraser & Neave Holdings Bhd.
Top decliners were British American Tobacco (Malaysia) Bhd, Kuala Lumpur Kepong Bhd and Allianz Malaysia Bhd.
It is also worth noting that the ringgit weakened further to 3.4698 versus a strengthening US dollar.
Most Asian stock markets rose slightly today. China’s Shanghai Composite gained 1.32% while Hong Kong’s Hang Seng Index advanced 0.71%.
Asian shares drifted while the dollar marked time on Friday ahead of the key US jobs report later in the session that could help it retake ground lost to the euro overnight, said Reuters.
Oil remained under pressure after Saudi Arabia announced deep cuts on Thursday to the prices it charges its Asian and US buyers, a week after refusing to support output cuts championed by some members of the Organization of Petroleum Exporting Countries.