KUALA LUMPUR (Jan 26): Crude oil prices and anticipation of Malaysia's Budget 2016 revision announcement this Thursday may dominate market sentiment today.

Crude oil forms a crucial portion of the country's economy and government revenue. At prices near US$30 a barrel, the spotlight could be on government measures to sustain economic growth and mitigate the impact of cheaper crude oil on government revenue.
 
Prime Minister Datuk Seri Najib Tun Razak wrote in najibrazak.com that Malaysia was not spared from current economic challenges amid lower crude oil prices, which would have an impact on the country's income.

Najib said crude oil at below US$30 a barrel had prompted countries to reassess their economic growth forecast. "I am confident Malaysia can weather the economic challenges. The government will ensure the country's economic growth stays strong with people-centric planning," he said.

Last Friday, the FBM KLCI rose 24.29 points or 1.52% to close at 1,625.21.

Overnight, US shares fell with crude oil prices. The Dow Jones Industrial Average declined 1.29% while S&P 500 fell 1.56%. Nasdaq Composite was 1.58% lower.

Reuters reported that Wall Street sold off on Monday, pulled lower by further weakness in oil prices as energy shares led declines, with major indexes retreating after last week's strong gains.

Oil prices fell 6% on concerns of oversupply after news that Iraq's output reached a record last month. US crude settled US$1.85 or 5.8% lower at US$30.34 a barrel.