Bursa jumps in early morning trade, oil approaches US$80 a barrel


  • Markets
  • Wednesday, 12 Sep 2018

KUALA LUMPUR: Bursa Malaysia surged in early morning trade as it reopened for trading following the long weekend as oil prices headed towards US$80 a barrel.

During the four-day break, Brent crude jumped over 3% on expectations of supply tightening due to sanctions against Iran in November while prices were further pushed up by Hurricane Florence.

Kenanga Research said in its pre-market open report that the techncal outlook remained positive with key simple moving averages still trending upwards.

"Immediate support can be identified at 1,788 (S1), near the 100-day SMA and 1,765 (S2) should the index trend lower. Conversely, resistances can be identified at 1,827 (R1) and 1,865 (R2)," it said.

At 9.07am, the FBM KLCI was up 19.4 points or over 1% to 1,818.57. There were 111.84 million shares traded valued at RM216.28mil. There were 139 gainers versus 153 decliners and 162 counters unchanged.

Public Bank led gains in active trade, rising 70 sen to RM25.70. The stock had jumped as much as RM1.16 to RM26.16 in the opening minutes of trade.

Petronas Chemicals also climbed 47 sen to RM9.90 while RHB Bank grew 22 sen to RM5.60

Other heavyweight gainers included Tenaga Nasional, rising 18 sen to RM15.98 and Hong Leong Financial Group, putting on 16 sen to RM19.56.

On the declining end, Petronas Dagangan dropped 30 sen to RM26.22 while PPB slipped 16 sen to RM16.72. Top Glove fell 24 sen to RM10.60 and AIRASIA lost eight sen to RM3.15.

Other Asian markets were mixed with Shanghai's Composite Index sliding back 0.2% on the threat of additional US trade tariffs that continue to weigh on sentiment. 

Hong Kong' Hang Seng Index, which entered a bear market yesterday as it had slipped over 20% from its January peak, halted its decline on Wednesday morning and lifted 0.15%.

Oil prices rose further on Wednesday after a report of falling crude inventories and the looming sanctions against Iran fuelled expectations of a tightening market, Reuters reported.

Hurricane Florence is expected to make landfall on the U.S. East Coast on Friday, resulting in fuel shortages following the evacuation of millions of households and businesses.

WTI crude futures were up 56 cents to US$69.81 per barrel while Brent crude futures climbed 24 cents to US$79.30 a barrel.

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