KUALA LUMPUR (April 19): The escalating tensions in the Middle East have influenced market sentiment and shifted investors' emphasis to the energy, finance and plantation sectors, which helped boost the FBM KLCI higher by midday on Friday.

At 12.30pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 6.66 points or 0.43% to 1,551.42 from Thursday's close of 1,544.76. The benchmark index opened 1.54 points better at 1,546.3.

The market breadth was negative with losers trouncing gainers 955 to 205 while 336 counters were unchanged, 880 untraded and 21 others suspended.

Turnover amounted to 3.12 billion units worth RM1.8 billion.  

Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng said the market had reacted to recent news about Middle East geopolitical tensions, which would increase the risk of inflation and rising commodity prices.

“Prices of commodities such as palm oil, crude oil and metals will rise, and cash and commodities are currently considered safe havens. Investors are anticipated to allocate funds to energy, financial services and plantations, while selling off other sectors. The market sentiment is not as bad as in Europe,” he said.

It was reported that Israel has launched missiles in a retaliatory strike against Iran earlier in the morning.

Press Metal Aluminium Holdimgs Bhd topped the gainers in heavyweight counters, gaining 16 sen to RM5.44, followed by MISC Bhd, adding 24 sen to RM8.07, while Maybank Bhd improved three sen to RM9.70 and Sime Darby Plantation Bhd was five sen better at RM4.46.

As for the actives, TWL Holdings Bhd, Ingenieur Gudang Bhd and Velesto Energy Bhd were all flat at three sen, 14 sen and 27 sen, while AwanBiru Technology Bhd was 12 sen easier at 20 sen.

On the index board, the FBM Emas Index erased 14.73 points to 11,602.24,  the FBM 70 Index dipped 175.61 points to 16,009.05 but the FBMT 100 Index gained 4.27 points to 11,259.8. 

The FBM Emas Shariah Index was 32.87 points weaker at 11,755.46 and the FBM ACE Index reduced 140.1 points to 4,807.42. 

Sector-wise, the Financial Services Index gained 45.27 points to 17,177.91, the Energy Index climbed 15.63 points to 967.63 and the Plantation Index earned 21.64 points to 7,376.09.

On the other hand, the Industrial Products and Services Index lost 0.63 of a point to 183.82