KLCI Erases Earlier Gains As Falling Crude Prices Drag Regional Markets Lower

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The FBM KLCI erased its earlier gains at the midday break, tracking regional markets as a fall in crude oil prices weighed on sentiment.

As of writing, Reuters said US crude skidded 14.24% to US$10.96 a barrel while Brent crude fell 4.05% to US$19.18 per barrel.

At 12.30pm, the FBM KLCI shed 1.77 points to 1,368.39. The index had earlier risen to a high of 1,377.37.

Market breadth turned negative with 492 losers and 147 gainers, while 461 counters traded unchanged. Trading volume was 3.03 billion shares valued at RM1.25 billion.

The top losers included Carlsberg Brewery Malaysia Bhd, Nestle (M) Bhd, Heineken Malaysia Bhd, United Plantations Bhd, Aeon Credit Service (M) Bhd, Dutch Lady Milk Industries Bhd, Kuala Lumpur Kepong Bhd, Allianz Malaysia Bhd, Hong Leong Industries Bhd and Malaysia Airports Holdings Bhd.

The actives included Velesto Energy Bhd, Key Alliance Group Bhd, LKL International Bhd, Sapura Energy Bhd, Bumi Armada Bhd, Careplus Group Bhd, Hubline Bhd and Powerwell Holdings Bhd.

The gainers included Petronas Dagangan Bhd, Panasonic Manufacturing Malaysia Bhd, Time Dotcom Bhd, Public Bank Bhd, Hartalega Holdings Bhd, Digi.Com Bhd, Power Root Bhd and Green Packet Bhd.

Reuters said most Southeast Asian markets gave up early gains to trade lower on Tuesday, as fears of a slow economic recovery from the coronavirus pandemic and a tumble in oil prices weighed on sentiment.

Oil prices extended the previous session’s slide on Tuesday, on worries about limited storage capacity for crude worldwide and expectations that demand for fuel may only recover slowly.

Kenanga IB Research said Asian stocks closed higher Monday as Japan’s central bank promised more asset repurchases to support the struggling economy.

It said back home, the FBM KLCI gained 0.31 points or 0.02% to finish at 1,370.16.

“Chart-wise, the index — following its rebound from previous oversold position to close the gap that was opened during the mid-March market meltdown — could face renewed selling pressures ahead after testing but failing to break above its 50-day SMA.

“On the chart, our support levels now stand at 1,360 (S1) and 1,310 (S2).

“On the upside, we have set our resistance levels at 1,400 (R1) and 1,420 (R2),” it said.


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