KUALA LUMPUR: Shares on Bursa Malaysia were higher at the opening on improved market sentiment from the downtrend caused by the sharp slump in oil prices, amid the ongoing Covid-19 fear.
At 9.04 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 1.02 points to 1,431.49 from 1,430.47 at Tuesday close.
Brent crude price rose 4.03 per cent to US$ 38.72 per barrel.
At the opening bell, the FBM KLCI opened 0.88 points better at 1,431.35.
On the broader market, gainers led losers 231 to 55, with 141 counters unchanged, 1,579 untraded and 17 others suspended.
Turnover amounted to 170.78 million shares worth RM79.05 million.
In a note today, Malacca Securities Sdn Bhd said the recovery in oil prices was merely caused by bargain hunting activities as a result of the recent downward sentiment for the commodity.
“As markets condition appears to be on a lookout for stability, we think the investors may continue their quest on nibbling beaten-down stocks,” it said in a note today.
The research house, however, remains cautious on the potential rebound of the oil price over a longer period of time as present market sentiment is still choppy with the COVID-19 outbreak continue to linger in the background.
Malacca Securities added that the recovery may also prompt quick profit-taking activities as markets are still finding their bottom.
Among the heavyweights, Maybank fell two sen to RM8.35, Public Bank lost 10 sen to RM16.80 while both Tenaga and IHH were flat each at RM12.50 and RM5.59 respectively.
Of the actives, energy-related sectors; Perdana Petroleum, Dayang Enterprise and Bumi Armada improved half-a-sen, six sen and one sen each to 17.5 sen, RM1.38 and 18.5 sen respectively.
On the index board, the FBM Emas Index rose 18.55 points to 10,004.69, the FBM Emas Shariah Index edged up 43.93 points to 10,586.32 and the FBM 70 increased 76.74 points to 12,014.69.
The FBMT 100 Index appreciated 19.68 points to 9,868.32 while the FBM Ace was 22.16 points higher at 4,804.01.
Sector-wise, the Industrial Products and Services Index inched up 1.59 points to 121.75, the Plantation Index gained 9.56 points to 6,319.17 but the Financial Services Index inched down 38.49 points to 13,928.79. — Bernama