KUALA LUMPUR: After witnessing a contraction in the market capitalisation by almost RM80 billion on Monday due to the Brent crude oil crash, Bursa Malaysia rebounded to close higher today as the benchmark oil rose 2.42 per cent to US$35.19 per barrel today.
At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) added 6.31 points to 1,430.47 from Monday’s close of 1,424.16.
After opening 8.3 points lower at 1,415.86 this morning, the local index moved between 1,414.95 and 1,446.73 throughout the day.
On the broader market, gainers led losers 491 to 477, with 345 counters unchanged, 693 untraded and 17 others suspended.
Turnover decreased to 4.41 billion shares worth RM3.20 billion from 6.66 billion shares worth RM3.62 billion recorded yesterday.
While investors fear over the ongoing COVID-19 outbreak, which have spread outside China and continue growing, the pressure mounted yesterday, no thanks to the oil price crash, arising from Saudi Arabia’s plan to drive prices lower after a failed negotiation with the Organisation of the Petroleum Exporting Countries+ led by Russia.
This resulted in the oil crash with Brent crude price trading at roughly 20 per cent lower at US$36.07 per barrel.
“The uncertainty caused by the virus outbreak, amid the renewed pessimism first seen in Asia, extending globally overnight was prompted by growing evidence that an oil shock of historic proportions is now underway.
“And while the oil prices have managed to retrench their biggest wallop since the 1991 Gulf War marginally, but with the verbal salvos now merging alongside the threat of increased pumping, investors are buckling in for a protracted and precarious battle of the oil mega powers for world dominance,” AxiCorp chief market strategist Stephen Innes said.
On the local front, political instability that had clouded Malaysia’s political landscape has come to an end as all 31 new Cabinet ministers were sworn in before the Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah at Istana Melawati today.
Meanwhile, as the crude oil price recovers, so do the technology, energy and Ace indices, which staged a strong rebound after the sharp decline yesterday.
Among heavyweights, the gainers were led by MISC, which jumped 37 sen to RM7.02, CIMB improved 15 sen to RM4.35, Maybank was 13 sen higher at RM8.37, while Public Bank rose 28 sen to RM17.30.
These counters contributed a combined 10.21 points to the gains in the composite index.
Of the actives, energy counters dominated the market with Sapura Energy inching up half-a-sen to 11 sen, while both Bumi Armada and Velesto Energy improved 1.5 sen each to 17.5 sen and 17 sen respectively, as oil price rebounds.