Monday 05 Jun 2023
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KUALA LUMPUR (Feb 13): The FBM KLCI rose 11.88 points or 0.66% on firmer oil prices and as bargain hunters snapped up beaten-down Tenaga Nasional Bhd shares.

The ringgit also strengthened as oil prices hit about US$60 a barrel, signalling a recovery in the the black gold market. At the 5pm closing bell, the KLCI settled at 1,800.95. The KLCI rebounded after falling 9.88 points or 0.55% yesterday.

“The Brent oil has touched US$60 (a barrel) today and I think this is a good sign for the recovery of oil prices,” said Areca Capital Sdn Bhd CEO Danny Wong.

Brent crude oil was traded at US$60.15 a barrel at the time of writing.

Wong told that the Malaysian share market was the worst performer among Asian counterparts when oil prices came down.

“(But) We will be the first one to rebound when the oil prices go back up. Surprisingly, our economy expanded 6% last year despite the slump in oil prices since last June,” Wong said, adding that this was higher than consensus expectation.

The KLCI also rose in tandem with the rebound in Tenaga shares. The stock slipped in recent days on the planned electricity tariff cut.

Bursa Malaysia saw 1.96 billion shares worth RM2.33 billion traded. Gainers led decliners at 493 over 303. A total of 343 counters remained unchanged.

Perisai Petroleum Teknologi Bhd was the most actively traded stock.

Top gainers included Guiness Anchor Bhd and Tasek Corporation Bhd while top decliners included British American Tobacco (M) Bhd and Gas Malaysia Bhd.

The ringgit strengthened to 3.5795 against the US dollar. For comparison, the ringgit also appreciated to 2.6372 against the Singapore dollar.

The KLCI had risen with Asian markets. Japan's Nikkei 225 climbed 0.37%, South Korea's Kospi rose 0.82% while Hong Kong's Hang Seng added 1.04pct.

Reuters said Asian shares soared on Friday on news of a ceasefire accord in Ukraine, while Sweden's surprise move to cut its main rate into negative territory and hopes of a resolution between debt-strapped Greece and its creditors burnished risk appetite.


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