KUALA LUMPUR: The FBM KLCI hovered at the 1,700 psychological level on Wednesday as investors digested fresh developments in the Middle East.
A volatile sentiment prevails in the global markets with investors assessing conflicting developments in the Iran war and its implication for global energy supply, said Apex Research.
"Latest reports indicate that the U.S. military has eliminated 16 Iranian mine-laying vessels near the Strait of Hormuz, after President Donald Trump warned that any mines placed in the critical oil shipping route must be removed immediately.
"While Trump suggested the conflict may be nearing its end, military operations continue, keeping geopolitical risks elevated," said the research firm in its latest report.
Meanwhile, Brent crude futures fell to nearly US$80 a barrel at its session low, and is down about 11% at US$87.80 at the time of writing.
This comes amid speculation that major economies could release strategic reserves to ease potential supply disruptions linked to the Strait of Hormuz.
"Against this backdrop, markets are likely to remain volatile as investors monitor geopolitical developments and policy responses aimed at stabilising global energy supply and inflation expectations," said Apex.
At 9.15am, the FBM KLCI was marginally higher at 1,701.76, with banks stocks rebounding but offset by losses in energy and plantations stocks.
Maybank rose 14 sen to RM11.80, CIMB gained six sen to RM7.91 and Public Bank gained five sen to RM4.80.
PETRONAS Gas, meanwhile, shed 16 sen to RM17.44, PETRONAS Chemicals shed nine sen to RM3.84. SD Guthrie dropped sen sen to RM5.66 while PPB shed eight sen to RM10.92.
There was a mild rebound in AirAsia X
, rising two sen to RM1.31, and its sister company Capital A, gaining 0.5 sen to 45.5 sen.
