Kuala lumpur: Bursa Malaysia ended the trading day at its intraday high, supported by strong interest in utilities and petrochemical stocks amidst rising crude oil prices. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) saw an increase of 10.15 points, or 0.59 percent, reaching 1,741.61 compared to the previous day’s close of 1,731.46.
According to BERNAMA News Agency, the benchmark index opened slightly higher at 1,731.47 and dipped to a low of 1,728.64 in early trading. However, it gained momentum throughout the day, culminating in a high close. The broader market also saw gainers surpassing losers, with 661 counters rising, 512 falling, and 600 remaining unchanged. Additionally, turnover rose to 3.70 billion units valued at RM3.27 billion, up from Tuesday’s 3.43 billion units worth RM2.94 billion.
Mohd Sedek Jantan, director of investment strategy and country economist at IPPFA Sdn Bhd, noted that the rise in the FBM KLCI was bolstered by gains in utilities and petrochemical sectors as crude oil prices neared US$90 per barrel. This performance aligns with the market’s recent trend of investors pivoting towards commodity-linked sectors, as high oil prices enhance the earnings outlook for energy-related stocks. The sectoral rotation has been prominent over the past two months due to geopolitical risks affecting energy prices.
Despite the positive movement in Bursa Malaysia, higher crude oil prices had a negative impact on broader regional sentiment, leading to declines in most Asian equity markets. Investors are reassessing the effects of elevated energy costs on inflation, interest rates, and corporate earnings.
In terms of stock performance, among the heavyweights, Maybank rose by four sen to RM10.60, CIMB Group increased by three sen to RM7.92, and Tenaga Nasional advanced by 24 sen to RM14.58. On the most active list, Dagang NeXchange rose by 3.5 sen to 53 sen, while Nexgram Holdings and Zetrix AI also saw gains.
United Plantations, Nestle, and UMS Integration were among the top gainers, whereas Malaysian Pacific Industries and Hong Leong Industries were notable losers. Various indices also reported positive movements, with the FBM Emas Index, FBMT 100 Index, and the Energy Index all seeing gains, although the Plantation Index declined.
Main Market volume improved significantly, while warrants turnover saw a decrease. The ACE Market volume also expanded, reflecting increased trading activity in various sectors including consumer products, industrial products, technology, and financial services.
Overall, the day’s trading activity at Bursa Malaysia showcased a concentrated interest in sectors linked to energy commodities, highlighting the ongoing influence of global oil price fluctuations on market dynamics.