Spotlight on Malaysian O&G shares, ringgit after crude oil falls 3%

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KUALA LUMPUR (Nov 12): The FBM KLCI may track overnight crude oil and US share losses as Malaysia's corporate financial reporting season progresses this month.

Lower crude oil prices may direct the spotlight on oil and gas, and plantation  shares in anticipation that cheaper crude oil will generate less biofuel demand.

The ringgit could also track cheaper crude oil, which forms a crucial portion of the Malaysian economy. The ringgit was last traded at 4.3675 versus the US dollar.

Yesterday, the FBM KLCI fell 20.79 points or 1.23% to close at 1,665.32.

Overnight, the three major US equity gauges fell 0.32% each. The Dow Jones Industrial Average fell 55.99 points to 17,702.22, S&P 500 declined 6.72 points to 2,075 while Nasdaq Composite ended 16.22 points lower at 5,067.02.

Reuters reported that US stocks finished lower on Wednesday after investors sold oil companies and dumped brick-and-mortar retailers after a disappointing forecast from Macy's.

Oil prices fell on worries US crude inventories were piling up and Iraq was bringing on more supply that would intensify OPEC's fight for market share.

Brent crude settled down US$1.63 at US$45.81 a barrel while US oil fell US$1.28 to US$42.93.