Historic oil price plunge sees stocks skid, KLCI slides 2%

market down

KUALA LUMPUR: Shares of oil and gas companies on Bura Malaysia fell in late morning trade on Tuesday after US light crude oil prices saw a historic plunge below zero and impacting key Asian markets.

At 11.15am, the FBM KLCI was down 27.71 points or 1.96% to 1,385.41. Turnover was 3.41 billion shares valued at RM1.32bil.

Decliners hammered advancers 805 to 103 or eight losers to one gainer and 198 counters were unchanged.

Refiner Petron Malaysia fell the most down 24 sen to RM3.76 while Hengyuan shed nine sen to RM3.01.

Yinson lost 21 sen to RM5.19 and Serba Dinamik 11 sen to RM1.57.

Dayang Enterprise lost seven sen to RM1.18, Wah Seong five sen to 61 sen, Carmin 4.5 sen to 62.5 sen, Dialog five sen to RM3.18 and Deleum 3.5 sen lower at 57 sen.

Reuters reported Japanese shares dropped on Tuesday with energy-related companies taking the brunt of a collapse in oil prices while the virus pandemic sapped risk appetite ahead of corporate earnings.

The Nikkei share average fell 1.58% to 19,358.77, slipping further from Friday's near six-week high of 19,922. The broader Topix lost 0.89% to 1,419.66.

However, US crude oil bounced back into positive territory on Tuesday, after a historic plunge below zero that shocked investors and pushed down stock prices and Asian currencies.

Reuters reported futures for May delivery of West Texas Intermediate rose nearly $39 but were still just $1.76 a barrel, after a storage squeeze and collapsing fuel demand crushed prices to eye-popping lows.

The contract expires at the end of trade on Tuesday, which is pushing investors to clear them from their books at any price, and June prices at $22 per barrel point to some relief.

But the collapse highlighted intense disruptions globally as the coronavirus pandemic and lockdowns paralyse the world economy, and augurs badly for a swift return to growth.

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