KUALA LUMPUR: Surging oil prices, which have lifted the energy index by 3.06% saw the FBM KLCI ending at a one-week high on Tuesday.
The benchmark index closed up 16.62 points, or 1.16% to 1,454.74, its highest in a week. It has risen to an intraday high of 1,455.46.
There were 470 gainers, 411 losers and 420 counters traded unchanged on the Bursa Malaysia. About 2.29 billion shares, valued at RM1.62bil, changed hands.
Dealers said buying activities today were seen in oil and gas, plantation and banking counters.
Reuters reported that oil prices rallied for a third day on Tuesday as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly.
U.S. West Texas Intermediate (WTI) crude rose US$1.51 to US$111.08 per barrel while Brent crude added US$1.70 to US$116.79 a barrel.
The Bursa Malaysia Energy Index rose 21.10 points or 3.06% to 709.76 points.
SPI Asset Management managing partner Stephen Innes said the recent global equities’ rebound is running out of steam despite positive month-end equity flows.
“Upbeat news flows out of China, the latest being an easing of quarantine rules, which is coming up against the headwinds from another bounce in oil prices and the retracement higher in US yields.
“Lots of noise under the surface, but it is still about energy inflation, with the street also running with the recessionary baton,” he said.
Innes said the backdrop is leaning inflationary with commodities higher, led by oil, up 2%, as a further cut to the OPEC oil surplus forecasts and reports that Saudi Arabia and the UAE cannot raise production give more support to crude markets.
“As long as commodities, particularly oil, remain elevated, the headwinds for equities markets, namely central bank tightening, will stay in place,” he added.
On Bursa Malaysia, Nestle jumped RM1.90 to RM135.40, PPB Group surged RM1.10 to RM16.10, Petronas Dagangan rose 62 sen to RM21.68 and F&N gained 40 sen to RM20.98.
Among the actives, Sapura Energy closed 0.5 sen higher at five sen with 91.19 million shares done, Green Packet fell 0.5 sen to six sen with 87 million shares traded and DNeX climbed two sen to 81.5 sen with 81.22 million shares exchanged hands.