Headwinds on Energy Stocks

FBM KLCI ended marginally higher as bargain hunting activities occurred during the final hour of trading but energy stocks may face headwinds

Headwinds on Energy Stocks
Sluggish demand in China saw crude oil prices down Photo by Maria Lupan / Unsplash

Buying support possibly from the local institution, saw the index ending above the 1,440 level.

"For today, statement that UMNO had decided to support the Yang di-Pertuan Agong’s proposal of a unity government potentially ending prevailing political impasse may inject some optimism into the local bourse.

"As such, we reckon the index may trend between the 1,440-1,460 range today. Meanwhile, sluggish demand in China saw crude oil prices dampened with the Brent crude declined to below the USD85/barrel thus may see some headwinds for the Energy sector today," says Rakuten Trade.

FBM KLCI ended marginally higher as bargain hunting activities occurred during the final hour of trading. The benchmark index gained 0.15% or 2.21 points to end at 1,443.50 with gainers led by NESTLE, PETDAG and PMETAL. Market breadth was mixed with 388 gainers against 382 losers while 418 were unchanged. Total volume stood at 2.68bn shares valued at RM1.63bn.

Regional Stocks Lost

Key regional indices closed largely higher except STI which lost 0.11% to close at 3,255.99. HSI and SHCOMP gained 0.57% and 0.26% to end at 17,523.81 and 3,096.91 respectively. Nikkei225 gained 0.61% to finish at 28,115.74.

Wall Street closed into positive territory as traders perceived that the Federal Reserves will be less aggressive with the pace of rate hikes. The DJI Average rose by 96 points while the Nasdaq added 111 points as the US 10-year yield continued with its decline to 3.69%.

Wall Street closed marginally higher as investors speculate less aggressive interest hikes in coming months. The DJIA gained 0.28% to close at 34,194.46. Meanwhile S&P500 and Nasdaq rose 0.59% and 0.99% to finish at 4,027.26 and 11,285.32 respectively.