KLCI falls over 30pts after US crude oil carnage

  • Markets
  • Tuesday, 21 Apr 2020

KUALA LUMPUR: Bursa Malaysia closed broadly lower on Tuesday, erasing the recent gains, as the US crude oil carnage sent key Asian and developing markets skidding.

At 5pm, the FBM KLCI was down 31.39 points or 2.22% to 1,381.73. Turnover in terms of shares traded surged to 6.53 billion shares valued at RM2.94bil.

The broader market was weaker as decliners beat advancers more than four to one or 827 losers to 198 gainers and 253 counters unchanged.

Developing world stocks and currencies retreated as a plunge in oil prices underscored deep economic ructions from the coronavirus pandemic, sapping risk appetite, Reuters reported.

The May US crude futures on Monday plunged to a depth never before seen, settling on the day at minus $37.63 a barrel, a decline of some 305%, or $55.90 a barrel. Prices set a low of negative $40.32 on rising concern that storage options were running out.

As for June delivery, it sank more than $4 to $16 per barrel.

The MSCI's index of emerging market stocks fell nearly 2%, eyeing its worst day in nearly three weeks. The currencies index was down 0.4%.

At Bursa, Petronas Chemicals skidded 42 sen to RM5.30 and wiped out 5.11 points, Petronas Dagangan lost 52 sen to RM20.20 and Petronas Gas four sen lower at RM15.34.

Consumer stocks fell the most, followed by oil and gas stocks and banks as whatever recent positive sentiment was wiped out.

Nestle fell RM2 to RM139, Dutch Lady RM1.36 to RM47.12, Carlsberg RM1.28 to RM28.30 and BAT 52 sen to RM11.38.

The tumble in crude palm oil for third month delivery dealt a heavy blow to plantations. CPO fell RM160 to RM2.072 per tonne.

KL Kepong lost 72 sen to RM20.40, PPB Group 26 sen to RM16.50, IOI Corp 13 sen to RM3.83, Batu Kawan 54 sen to RM12.34 and Sime Plantation 11 sen to RM4.77.

As for telcos, Axiata lost 10 sen to RM3.75, Maxis seven sen down at RM5.39 and Digi five sen to RM4.52.

Maybank fell 13 sen to RM7.56 and erased 2.22 points, Public Bank 42 sen to RM15.74 and erasing 2.48 points, CIMB 16 sen to RM3.61 and wiped out 2.41 points. Hong Leong Bank ended 30 sen to RM13.48.

Tenaga lost 10 sen to RM12.50 and IHH Healthcare 10 sen to RM5.13. Genting 14 sen lower at RM3.98.

Among the glove makers Hartalega tumbled 42 sen to RM7.25 and wiped out 2.16 points. However, Comfort Gloves bucked the trend to climb 15 sen to RM1.13 with 80.72 million shares done. Rubberex 10 sen higher to RM1.23.

China shares closed lower on Tuesday, as caution recaptured world markets after U.S. crude futures recorded a historic plunge overnight, prompting investors to stay away from riskier assets, Reuters reported.

The Shanghai Composite index was down 0.9% at 2,827.01, narrowing early losseS. The blue-chip CSI300 index was down 1.18%.

Hong Kong shares fell the most in nearly one month on Tuesday, as the U.S. crude futures' historic plunge overnight prompted investors to stay away from riskier assets. The Hang Seng index was down 536.47 points, or 2.2%, at 23,793.55, its lowest closing level since April 6. The Hang Seng China Enterprises index fell 2.13% to 9,614.93.

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