KUALA LUMPUR: The FBM KLCI slipped below the 1,700-mark again for the second time this week, tracking weakness across regional markets amid escalating Middle East tensions and surging oil prices.
The FBM KLCI fell 12.16 points, or 0.71%, to 1,698.85, recovering from its intraday low of 1,696.04. For the week, the benchmark index fell 1.12%.
Market breadth was negative, with 440 gainers and 627 losers, while 541 counters traded unchanged. Turnover came in at 2.9 billion shares worth RM3.45bil.
A dealer said the spike in oil prices has heightened risk aversion in regional markets, with investors turning cautious amid uncertainty surrounding the Middle East conflict.
He added that concerns over potential supply disruptions and the knock-on impact on inflation are likely to keep market sentiment fragile in the near term.
Among the decliners, Nestle fell RM1.70 to RM102.40, Malayan Cement lost RM1.33 to RM6.15, PETRONAS Dagangan eased 68 sen to RM21.26 and Heineken dropped 56 sen to RM22.14.
In contrast, Gas Malaysia rose 24 sen to RM5.28, Dutch Lady
gained 18 sen to RM32.00, Concrete Engineering Products added 16 sen to RM1.35 and PETRONAS Chemicals climbed 15 sen to RM4.75.
Brent crude oil prices climbed back above US$100, rising 45 cents, or 0.45%, to US$100.91 a barrel, while US West Texas Intermediate crude slipped five cents to US$95.68 per barrel.
The International Energy Agency said the war is creating the biggest oil supply disruption in history, while some analysts have warned it could be only a matter of weeks before airlines begin running out of jet fuel, Reuters reported.
Meanwhile, in terms of fund flows, foreign funds and retailers were net sellers on Thursday, disposing of equities worth RM138mil and RM17mil respectively.
Local institutions emerged as net buyers with total purchases valued at RM156mil.
On the forex market, the ringgit weakened 0.27% against the US dollar to 3.9367, but edged up 0.3% against the Singapore dollar to 3.0708.
The local currency strengthened 0.77% against the euro to 4.5033 and rose 0.67% against the pound sterling to 5.2233.
Around the region, MSCI’s Asia ex-Japan stock index slid 1.54%, with most regional bourses ending lower. Among the key regional markets:
Japan’s Nikkei 225 closed down 1.116% to 53,819.61;
Hong Kong’s Hang Seng Index lost 0.91% to 25,482.50;
China’s CSI300 Index declined 0.4% to 4,669.14;
Taiwan’s Taiex fell 0.54% to 33,400.32;
South Korea’s Kospi gave up 1.72% to 5,487.24; and
Singapore’s Straits Times Index slid 0.27% to 4,842.27 points.
