ENERGY COUNTERS DRAG BURSA MALAYSIA LOWER AT MIDDAY BREAK AS OIL PRICE FALLS

By Karina Imran

KUALA LUMPUR, Sept 27 (Bernama) -- Bursa Malaysia fell deeper into the red at the midday break as a big drop in crude oil prices likely weighed on energy counters, said an analyst.

Tenaga Nasional fell six sen to RM14.60 and YTL Power slid 21 sen to RM3.62, dragging the composite index down by 6.09 points.

At 12.30 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) was down 11.99 points, or 0.72 per cent, to 1,659.33, compared to Thursday’s close. The benchmark index opened 2.73 points easier at 1,668.59.

Across the broader market, decliners outnumbered advancers 597 to 349, with 438 counters unchanged, 1,142 untraded and 123 suspended. Turnover stood at 1.82 billion shares worth RM1.23 billion.

It was reported that oil prices fell sharply after Saudi Arabia gave up its US$100 price target in preparation for raising output, along with Organisation of the Petroleum Exporting Countries (OPEC) members and allies in December.

SPI Asset Management managing partner Stephen Innes said Malaysia’s stock market tends to be more sensitive to movements in the energy sector.

"The continued rise in US yields, coupled with the diminished likelihood of a 50 basis points US interest rate cut in November may dampen local risk appetite today. In addition, a few seasonal factors could drive investors and speculators to scale back their positions. With the end of the quarter approaching and China’s markets closed for the Golden Week from Oct 1-7, caution could seep into the markets," he told Bernama.

Innes noted that while profit-taking may temper the recent rally, the overall bullish sentiment remains strong for the time being.

Bursa heavyweight counters Maybank slipped eight sen to RM10.58, Public Bank shed 10 sen to RM4.57, CIMB Group dropped four sen to RM8.24, and IHH Healthcare lost one sen to RM7.09. 

Among active counters, Lambo Group eased 1.5 sen to one sen, Sapura Energy was flat at four sen, JKG Land added 1.5 sen to 12 sen and Capital A gained three sen to 94 sen. 

On the index board, the FBM Emas Index lost 65.05 points to 12,394.85, the FBMT 100 Index fell 64.42 points to 12,094.30 and the FBM 70 Index edged down 7.24 points to 17,491.02.

The FBM ACE Index dipped 50.35 points to 5,147.49, and the FBM Emas Shariah Index lost 17.61 points to 12,311.86.

By sector, the Plantation Index dropped 19.70 points to 7,165.26 and the Financial Services Index lost 182.59 points to 19,493.27. The Industrial Products and Services Index edged up 1.57 points to 178.46, and the Energy Index perked up half a point to 856.54. 

-- BERNAMA