KUALA LUMPUR: The sustained oil prices breathed life into lower liners oil and gas stocks which climbed in active trade early Tuesday but the market’s exuberance did not flow to the blue chips which slumped for the second day this week.
At 9.10am, the KLCI was down 2.03 points or 0.11% to 1,781.63. Turnover was 218.87 million shares valued at RM55.92mil. There were 139 gainers, 105 losers and 190 counters unchanged.
Asian shares wavered on Tuesday, bolstered by record highs on Wall Street but hobbled by uncertainty as traders waited on a Federal Reserve meeting for clues on US monetary policy.
MSCI's broadest index of Asia-Pacific shares outside Japan turned slightly higher after dipping into negative territory, Reuters reported.
At a two-day meeting beginning later on Tuesday, the Fed is expected to take another step toward policy normalisation and announce plans to begin unwinding its US$4.2 trillion portfolio of Treasuries and mortgage-backed securities, the wire report said.
Hong Leong Investment Bank (HLIB) Research said positive sentiments from the overseas market are likely to spill over towards stocks on the local bourse.
However, it said the KLCI’s upside could be capped along 1,795-1,800 with traders taking a wait-and-see stance prior to the FOMC meeting and may sell-into-strength over the near term.
“Nevertheless, oil and gas related stocks should be able to attract trading interest as WTI crude oil has closed above US$50, tracking the Brent oil which is hovering above US$55,” said the research house.
Among the O&G stocks, T7 Global
rose three sen to 41.5 sen, Alam Maritim added 1.5 sen to 19.5 sen, Hubline and KNM one sen each to seven sen and 25 sen. Also up one sen was Perisai to five sen and UMW Oil and Gas added 0.5 sen to 31 sen.
Scomi gained 3.5 sen to 19.5 sen and it was the most active with 65 million shares done and its Scome Energy added two sen to 16 sen.
Riding on the wave on firm crude oil prices was Hengyuan, up eight sen to RM8.16.
Telekom fell seven sen to RM6.233 with 100 shares done, IHH Healthcare was also down seven sen to RM5.82, Maybank six sen to RM9.74 while Westports and CIMB lost three sen each to RM3.85 and RM6.66.
Lii Hen jumped 11 sen to RM3.42 after Hong Leong Investment Bank Research started coverage of the company with a Buy call.
IQ Group and Kossan added eight sen each to RM3.43 and RM6.68 while MKH and Magni-Tech gained seven sen each to RM2.25and RM6.25.
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