O&G Counters Facing Selling Pressures

As corporate results reporting has begun, we noticed earnings from the Oil & Gas related stocks to be rather weak so far amid the sector’s volatility

O&G Counters Facing Selling Pressures
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The FBM KLCI closed slightly lower due to profit taking activities during the afternoon session particularly on Telcos which performed rather well earlier this week.

"For today, we expect the index to possibly hover between the 1,510-1,525 range," says Rakuten Trade.

"As corporate results reporting has begun, we noticed earnings from the Oil & Gas related stocks to be rather weak so far amid the sector’s volatility.

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"As such, we expect some selling pressure on the O&G counters over the immediate term. Meanwhile, the Brent crude edged higher to almost US$97/barrel on expectations of improving demand," it says.

FBM KLCI

FBM KLCI closed marginally lower amid the selldown regionally. The benchmark index slipped 0.10% or 1.54 points to end at 1,516.62 with losers led by MISC, NESTLE and KLK. Market breadth was negative with 486 losers against 364 gainers.

Total volume stood at 2.51bn shares valued at RM1.95bn.

Wall Street

Wall Street ended in positive territory with all 3 major indices struggled to stay marginally higher as traders remain in cautious mode, the DJI Average closed 19
points higher while the Nasdaq gained 27 points as the US 10-year yield fell slightly to 2.89%.

Key regional markets closed mostly lower. Nikkei 225 lost 0.96% to end at 28,942.14. HSI and SHCOMP fell by 0.80% and 0.46% to end at 19,763.91 and 3,277.54 respectively.

Meanwhile STI gained 0.24% to 3,270.53. Wall Street closed marginally higher yesterday. The DJIA gained 0.23% to end at 33,999.04. S&P500 and Nasdaq added 0.23% and 0.21% to close at 4,274.04 and 12,938.12 respectively.