Dip in crude oil prices sends equities lower

KUALA LUMPUR: A decline in crude oil prices overnight gave the cue for the domestic stock market to take profit from recent gains.

The rapid rise in commodity prices has been keeping local blue-chips on the advance, even as the ongoing Russian-Ukraine war applies pressure in the US and global markets.

However, a drop in Brent crude prices overnight from nine-year highs put a halt to the FBM KLCI's decline as came within reach of the 1,620 resistance in Thursday trading.

Energy stocks on Bursa Malaysia fell 1.4% amid the pull back although the decline could be temporary as potential disruptions in the Russian supply of crude to Europe could keep prices at multi-year highs.

At 9.05am, the benchmark index was down 3.87 points to 1,614.67. The market breadth was negative wtih 220 decliners compared to 113 gainers.

Financial services counters were among the leading laggards as Maybank retraced four sen to RM9.08 and Public Bank shaved one sne to RM4.42.

MISC meanwhile lost 18 sen to RM7.17 while Press Metal slid five sen to RM7.17

Plantations took a step back from ther rally with Kuala Lumpur Kepong losing 38 sen to RM28.62 and Sime Darby Plantation shedding one sen to RM5.25.

Despite the profit-taking in the oil and gas sector, Petronas Chemicals maintained its rally by 14 sen to RM10.14.