KUALA LUMPUR: Bursa Malaysia sank as it opened for Monday trading, tracking the plunge in US markets on Friday as oil prices surged past the US$115 a barrel mark.
Global sentiment is rocky with US stock prices sinking deeper into correction territory.
"Elevated oil prices, coupled with a firmer US dollar amid expectations of a more hawkish Federal Reserve, have pressured regional currencies and risk appetite," said Apex Research in its market review.
On Monday, the benchmark FBM KLCI gapped down to 1,702.08, a 10.57 drop from last Friday's close.
Maybank dropped 10 sen to RM11.36, Sunway shed 15 sen to RM5.32 and IHH fell 13 sen to RM8.92.
Few stocks were positive but Press Metal
outperformed, jumping 38 sen to an an all-time high RM7.99. PETRONAS Chemicals was another strong performer, gaining 13 sen to RM5.93.
In its report, Apex expects upside for Malayisan equities to remain capped against this backdrop, the ringgit's weakness beyond the 4.00 level and continued foreign outflows.
The country's energy-related stocks, however, could remain supported by higher crude prices.
"We favour the energy sector amid Middle East tensions, with upstream oil & gas benefiting from higher crude prices, supporting near-term earnings.
"Plantations may see indirect support from firmer biofuel demand, while defensive utilities remain attractive as investors seek stability amid heightened volatility," said Apex.
