KUALA LUMPUR: Malaysia's main stock index looked to remain range-bound even as anxieties grew over another spike in crude oil prices, and diminished hopes of a quick end to the armed conflict in the Middle East.
Makrets are likely to remain cautious in the near term as ivestors monitor evolving geopolitical risk, said Apex Research in its report.
"Volatility may stay elevated as participants assess the potential implications for global energy supply and inflation. Nevertheless, any signs of diplomatic de-escalation could help stabilise sentiment and support a gradual recovery in risk assets."
With the conflict entering its sixth day, the research firm also noted that earlier hopes of a de-escalation faded after Iran warned that Washington would “bitterly regret” the sinking of an Iranian warship off Sri Lanka.
The FBM KLCI slipped 0.6 points to 1,711.99 as the market commenced trading on Friday, a mild decline considering Wall Street's deeply negative overnight performance.
Among the blue chips, PETRONAS-related stocks continued to climb, including PETRONAS Chemicals up 33 sen to RM3.84, PETRONAS Dagangan gaining 46 sen to RM22.66 and PETRONAS Gas rising two sen to RM18.
AirAsia X
was the top traded counter of the day with 27.8 million shares done as the selldown continued, dragging the airline nine sen lower to RM1.33 as global air routes closed and flights re-routed amid the ongoing Middle East conflict.
Also among the most active, Bumi Armada rose 0.5 sen to 35 sen and Hengyuan Refining gained 10 sen to RM1.69.
Meanwhile, Malacca Securites Research said Bank Negara's decision to keep rates steady should be positive for the bnaking sector, underpinned by favourable US-MY rate differentials and a stronger ringgit, which should benefit banks’ assets.
"Robust prospective dividend yields should provide a hedge against near-term volatility as well," it added in its review.
As the sentiment dipped on external pressures on Friday, heavyweight banks were mostly lower except for Maybank, gaining two sen. CIMB dropped seven sen to RM7.97, Hong Leong Bank dropped four sen to RM22.94 and RHB shed three sen to RM8.47.
