Oil price surge lifts investor sentiment on Bursa

KUALA LUMPUR: Bursa Malaysia rebounded on Tuesday following the sell-off in the previous session as equities were buoyed by the surge in crude oil prices on ongoing supply disruptions and a stronger demand outlook.

At 9.03am, the FBM KLCI was up 4.98 points to 1,575.44.

Malacca Securities Research also forecast some fresh buying support given the extension of the suspension on intra-day and proprietary day trading short selling for another six months.

"We expect the key index to continue trading sideways, with support pegged around 1,550 and resistance located around 1,590-1,600.

Brent crude surged 3.7% in the previous session to US$65.24 a barrel amid supply disruptions due to the Texas Freeze and as Goldman Sachs forecast that prices would climb into the US$70s over the next few months.

Oil and gas-related counters were among the top gainers in the opening minutes of trade. Hengyuan Refining jumped 32 sen to RM1.81, Hibiscus Petroleum added three sen to 72 sen, Petron Malaysia climbed 10 sen to RM5.11 and Bumi Armada rose 1.5 sen to 38.5 sen.

Petronas counters were also on the advance, led by Petronas Chemicals rising 10 sen to RM7.65, Petronas Dagangan up two sen to RM19.18 and Petronas Gas adding 14 sen to RM1.622.

Among the KLCI blue chips, glove stocks firmed up after their recent sell down on fears the Covid-19 vaccine would impact demand. Top Glove rose five sen to RM5.83, Hartalega added 10 sen to RM11.74 and Supermax added 11 sen to RM5.64.

Bank counters, which are expected to release their earnings later this week, moved slightly higher. Maybank gained two sen to RM7.97 Public Bank was two sen higher to RM4.12, CIMB added four sen to RM4.20 and Hong Leong Bank lost four sen to RM17.64.

Meanwhile, top actives were Hubline unchanged at five sen, Mobilia surging 43 sen to 66 sen and Alam Maritim adding 0.5 sen to 10.5 sen.
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Bursa Malaysia , FBM KLCI , equities


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