KUALA LUMPUR: Investors remained on edge as conflicting developments over the war in the Middle East and the global supply of crude oil continued to influence trading sentiment.
The International Energy Agency's agreement to release 400 million barrels of oil from strategic reserves helped to stabilise crude prices, although the threat of further disruption is mounting amid reports of oil vessels coming under attack in the Strait of Hormuz.
As at the time of writing, Brent crude futures pipped US$100 a barrel, with expectations of further increases should Iran's blockade of the shipping lane continue.
The FBM KLCI pared losses to 5.77 points or 0.34% to 1,700.69 as traders adopted a wait-and-see approach amid the uncertainty.
Declining issues outnumbered advancers 563-to-349 on Bursa Malaysia. Trading volume was 1.61 billion shares valued at RM1.65bil.
Sectors that led the decline included financial services, transport and logistics, utilities, and healthcare.
Investors opted into energy and oil-related counters. PETRONAS Chemicals led the blue chips, rising 29 sen to RM4.43, while other beneficiaries to soaring crude prices included Hengyuan Refining
, rising 10 sen to RM1.67, and Hibiscus Petroleum, gaining six sen to RM2.26.
Elsewhere, major Asian markets were also retreating from the prospect of rising global inflation. Japan's Nikkei dropped 1.77% to 54,053 and South Korea's Kospi fell 0.97% to 5,555.
China's Shanghai Composite index dropped 1.26% to 2,709, the CSI300 slid 0.97% to 4,659 and Hong Kong's Hang Seng shed 1.23% to 25,579.
Taiwan's Taiex lost 1.43% to 33,622 and Singapore's Straits Times fell 0.67% to 4,831.
