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Tuesday, May 23, 2017

Market Daily Report: KLCI falls 7.78pts as UK blast hits sentiment

KUALA LUMPUR (May 23): The FBM KLCI fell 7.78 points or 0.4% on profit taking and as an explosion in the UK's Manchester city, clouded sentiment.

At 5pm, the KLCI closed at its intraday low at 1,767.17 points, as investors took profit in index-linked Petronas Gas Bhd and Petronas Dagangan Bhd shares.

Petronas Gas fell 62 sen to RM19.18, while Petronas Dagangan dropped 36 sen to RM24.68. Petronas Gas and Petronas Dagangan were the fourth and seventh-largest decliners on Bursa Malaysia, respectively.

Bursa Malaysia saw 2.91 billion shares, valued at RM2.8 billion changed hands. There were 636 decliners versus 292 gainers.

Oil and gas companies' shares could have taken the cue from lower crude oil prices, after the U.S. proposed to sell half of its crude oil inventory.

Reuters reported oil prices fell on Tuesday, weighed down by U.S. President Donald Trump's plan to sell off half of the country's huge oil stockpile, threatening a future glut, even as OPEC and its allies cut output to try and tighten the market. Brent crude ended a run of four days of consecutive gains to trade 36 cents lower at US$53.51 per barrel at 0831 GMT.

In the UK, Reuters reported the sterling slipped on Tuesday after a suspected suicide attack killed at least 22 people and wounded 59 at a pop concert in the English city of Manchester, while the euro held gains made, after German Chancellor Angela Merkel said it was "too weak".

In Malaysia, Mercury Securities Sdn Bhd research head Edmund Tham told that other than the news on the UK explosion, the Malaysian share market also fell on profit taking.
“All (Bursa Malaysia) industry indices were down today, we didn’t see anything other than the (suspected) terrorist attack news so far.

"But we believe there were some profit taking activities going on, as well. The market decline was not entirely due to the (UK) news, which affects sentiment,” Tham said.

Source: The Edge

Friday, May 19, 2017

Market Daily Report: FBM KLCI up on crude oil as U.S. shares recover

KUALA LUMPUR (May 19): The FBM KLCI rose 1.11 points or 0.1% as higher crude oil prices led to oil and gas companies' share gains. Malaysian equities also tracked Asian share gains, following U.S. stocks' overnight recovery.

At 5pm, the KLCI closed at 1,768.28 points, after reaching its intraday high and low at 1,771.50 and 1,767.89 points respectively.

KLCI-linked oil and gas stock Petronas Dagangan Bhd rose 68 sen to RM24.76, while Petronas Gas Bhd ended flat at RM19 after rising to its intraday high at RM19.56. Petronas Dagangan was Bursa Malaysia's top gainer.

Across Bursa Malaysia, 3.27 billion shares, worth RM3.24 billion, were traded. Gainers outpaced decliners at 623 versus 302 respectively.

Reuters reported oil futures rose on Friday to the highest in nearly a month, on growing optimism big producing countries will extend output cuts to curb a persistent glut in crude, with key benchmarks heading for a second week of gains.

Brent crude was up 28 cents or 0.5% at US$52.79 at 0630 GMT. The contract earlier rose to the highest since April 21 and is on track for a nearly 4% climb this week, its second week of gains.
In Malaysia, TA Securities Holdings Bhd senior technical analyst Stephen Soo told “Oil and gas stocks are rather buoyant now and all eyes will be on these counters soon. The degree of production cuts may be higher than the market’s expectations, but this would mean oil prices will be firmer."

“Further[more], Asian (share) markets are also recovering, following a period of being under pressure on concerns over U.S. interest-rate hike announcements,” Soo said.

Across Asia, Japan’s Nikkei 225 climbed 0.19%, while Hong Kong’s Hang Seng rose 0.15%. In overnight U.S. share trades, the Dow Jones Industrial Average climbed 0.27%, S&P 500 increased 0.37%, while Nasdaq Composite was 0.73% higher.

U.S. shares recovered on Thursday, after closing lower on Wednesday, amid allegations U.S. President Donald Trump tried to influence a federal probe, which sparked talk of his impeachment.
It was reported former Federal Bureau of Investigation chief James Comey said in a memo that Trump had asked him to end a probe into former National Security Adviser Michael Flynn's ties with Russia.

Source: The Edge