Index slide 0.45%, oil prices cooled off

Index slide 0.45%, oil prices cooled off

KUALA LUMPUR: The FBM KLCI fell 0.45% in early trade this morning, weighed by select index-linked stocks as crude oil prices stabilised somewhat.

At 9.05am, the FBM KLCI fell 7.13 points to 1,597.17.

The decliners included Hong Leong Financial Group Bhd, Panasonic Manufacturing Malaysia Bhd, Petronas Chemicals Group Bhd, PPB Group Bhd, Ajinomoto (M) Bhd, Maxis Bhd, MBM Resources Bhd, Westports Holdings Bhd and Hong Leong Bank Bhd.

Oil prices cooled on Wednesday as Saudi Arabia said the kingdom had fully restored its oil supply following attacks on its crude facilities although caution ahead of an expected U.S. interest rate cut kept wider financial markets in tight ranges, according to Reuters.

U.S. Treasury yields slipped ahead of an expected interest rate cut by the Federal Reserve at its two-day policy meeting on Wednesday, it said.

Brent crude futures fell 0.64% to $64.14 a barrel while U.S. West Texas Intermediate (WTI) crude lost 0.78% to $58.88 per barrel.

CGS-CIMB Retail Research said the sharp surge in crude oil prices on Monday led to speculative buying on oil and gas related stocks on Bursa Malaysia yesterday.

It said the market in general was mostly flat with buying seen on selective blue chips.

“The benchmark FBMKLCI has been trading sideways for the past month or so and yesterday was no different.

“The index is still stuck in a range between 1,580 and 1,620. Until a breakout of either side, one can expect more see-saw movements in the days ahead.