KUALA LUMPUR (Jan 29): Export-based companies' shares may be closely watched against a stronger ringgit as rising crude oil prices support sentiment.  

A stronger ringgit translates into less income in ringgit terms when exporters convert their foreign currency-denominated sales into the ringgit.  Crude oil gains at above US$33 a barrel could direct the spotlight on shares of oil and gas (O&G) support-services firms.

O&G shares may also take the cue from Prime Minister Datuk Seri Najib Tun Razak, who indicated that the Malaysian government would ensure the continuity of major projects including Petroliam Nasional Bhd's Refinery and Petrochemical Integrated Development (Rapid) in Pengerang, Johor.
    
Najib said this yesterday when he announced the country's Budget 2016 revision as lower crude oil prices hit government revenue.
 
Yesterday, the FBM KLCI rose 2.99 points or 0.18% to close at 1,634.53. The ringgit strengthened to 4.2055 against a weaker US dollar.

Overnight, the US Dollar Index, which tracks the US dollar against major currencies, fell to 98.51 from 98.9 a day earlier. In US share trades, the Dow Jones Industrial Average climbed 0.79%, S&P 500 rose 0.55% while Nasdaq Composite was 0.86% higher.

Reuters reported that Wall Street climbed on Thursday as a blockbuster quarterly report from Facebook drove tech shares higher and a bounce in oil prices propped up the beleaguered energy sector.

Oil prices rose for the third straight day on Thursday on hopes of the first global deal in over a decade among oil-producing countries to help clear a glut.

By the close, Brent was up 79 cents or 2.4% at US$33.89 a barrel after trading as high as US$35.84. US crude settled up 92 cents or 2.9% at US$33.22 per barrel, down from a high of US$34.82.