O&G stocks To Experience Some Selling Pressure

Oil and Gas stocks should also experience some selling pressure as the Brent crude price closed lower at US$92/barrel, says Rakuten Trade

O&G stocks To Experience Some Selling Pressure
Photo by Zbynek Burival / Unsplash

The FBM KLCI ended weaker amid a regional downtrend attributed to fresh lockdown in China but today's market should see selling pressure on Oil and Gas stocks.

"Though we expect some bargain hunting to emerge, sentiment is seen to remain cautious hence anticipate the index to hover within the 1,485-1,500 range today.

"Nonetheless, we reckon selling in Plantation stocks should appear as the crude palm oil dipped to below the RM4,000 level on lower exports. Meanwhile, Oil and Gas stocks should also experience some selling pressure as the Brent crude price closed lower at US$92/barrel," says Rakuten Trade.

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FBM KLCI closed lower yesterday. The benchmark index slipped 1.33% or 20.1 points to end at 1,491.95 with losers led by PETDAG, MPI and KLK. Market breadth was negative with 661 losers against 267 gainers. Total volume stood at 2.44bn shares valued at RM2.02bn.

Wall Street and Job Data

Wall Street ended mixed yesterday. The DJIA and S&P500 gained 0.46% and 0.30% to end at 31,656.42 and 3,966.85 respectively. Nasdaq shrunk 0.26% close at 11,785.13.

Wall Street closed on a mixed note as traders are looking towards the job data later today. The DJI Average was up 146 points while the Nasdaq declined by 31 points as the US 10-year yield continues to climb currently at 3.26%.

Key regional markets closed broadly lower yesterday. Nikkei 225 lost 1.53% to end at 27,661.47. HSI and SHCOMP fell by 1.79% and 0.54% to end at 19,597.31 and 3,184.98 respectively. Meanwhile STI gained 0.07% to 3,224.08.