KUALA LUMPUR: Investors' fears over disruptions to global oil supply intensified after three vessels were struck by projectiles in the Straits of Hormuz, underlining Iran's threat to attack any vessel that attempted to pass the crucial shipping lane.
Brent crude futures surged nearly US$99 a barrel, putting stock traders in panic mode amid the threat of soaring inflation and global economic disruption.
Asian markets fell as the Thursday trading session commenced, with Japan's Nikkei sliding over 1% and Singapore's Straits Times shedding 0.3%.
Malaysia's benchmark FBM KLCI was down nearly 13 points or 0.75% to 1,696.19 as at the time of writing.
According to Apex Research, oil prices remain volatile despite the International Energy Agency's release of 400 million barrels from strategic reserves to stabilise markets.
"Against this backdrop, markets are likely to trade with heightened volatility as investors continue to monitor geopolitical developments and their implications for global growth and inflation," it added.
The research firm recommended a bias towards export-oriented sectors amid geopolitical risks and currency volatility. It said energy and plantaiton sectors may benefit from higher oil prices, while defensive yield plays such as REITs and utilities remain attractive in a volatile environment.
On the FBM KLCI laggards included Hong Leong Bank falling 28 sen to RM22.80, QL Resources shedding seven sen to RM3.79 and Tenaga Nasional dropping four sen to RM14.20.
PETRONAS Chemicals jumped 43 sen to RM4.57, PETRONAS Dagangan added 28 sen to RM22.18 and IHH climbed 13 sen to RM9.12.
Among the most active counters, AirAsia X
resumed its fall, dropping six sen to RM1.14, while Capital A shed one sen to 41.5 sen.
Bumi Armada gained one sen to RM35 sen, Velesto rose 0.5 sen to 34 sen and Perdana Petroleum gained 0.5 sen to 17.5 sen.
