KUALA LUMPUR: Higher crude oil prices lifted oil and gas stocks higher at the close on Thursday, pushing Bursa Malaysia to close in green.
At 5pm, the FBM KLCI closed up 8.24 points, or 0.62% to 1,330.90. The benchmark index opened 2.04 points lower this morning.
Market breadth turned positive as gainers were on the upper hand against the losers on a ratio of 671-to-203 stocks. Traded volumes stood at 5.14 billion shares worth RM2.43bil.
Dealers said market sentiment was lifted by a rebound in crude oil prices on hopes for a deal to end the price war between Saudi Arabia and Russia.
Crude futures surged after US President Donald Trump expressed optimism that a damaging price war between Saudi Arabia and Russia can be resolved.
Brent crude rose 8.97%, or US$2.22 to US$26.96 while US West Texas Intermediate (WTI) advanced 8.67%, or US$1.76 to US$22.07.
Anchoring the gainers list on Bursa Malaysia is Nestle, which added RM1.70 to RM137.80, followed by Petronas Dagangan, rising RM1.32 to RM21.70 and QL Resources, gaining 40 sen to RM7.90.
Decliners on the broader market include Panasonic Manufacturing, declining 50 sen to RM103, PPB Group falling 12.5 sen to 82 sen and EIG, dropping 12 sen to 39 sen.
On the external front, Chinese shares ended higher with the Shanghai Composite index rising 1.69% at 2,780.64. The blue-chip CSI300 index was up 1.62%.
Hong Kong’s Hang Seng index was up 194.27 points, or 0.84%, at 23,280.06, Japan's Nikkei 225 fell 1.37% to 17,818.72 while South Korea’s Kospi added 2.34% to 1,724.86.
Rolling coverage of the latest economic and financial news as oil prices jump by more than 30% and the US jobless report reveals scale of coronavirus damage * US president claims oil production cut deal; Russia denies agreement * US initial jobless claims hit record; 6.6m people signed on last week * Earlier: One in four UK firms cut staff levels * Coronavirus – latest updates * See all our coronavirus coverage
13:11 EDT Closing summary: Trump sends oil prices rocketing and US jobless claims soar Donald Trump sent oil markets into an unprecedented buying frenzy on Thursday afternoon, after tweeting that Saudi Arabia and Russia had reached a deal on production cuts. Russia poured cold water on the details, saying there had been no deal, but it still put oil futures prices on track for the biggest daily rise ever. At the time of writing Brent crude futures prices had gained 22%. Here are the other important developments from today: * More than 6.6m Americans filed jobless claims last week, by far the largest number in history and an indication that unemployment could reach a record high. Economists said it was one of the starkest indications yet of the scale of the economic pain already inflicted on the US. * In the UK, the experimental data from the Office for National Statistics said that a quarter of UK companies are already cutting staffing levels “in the short term” due to the coronavirus crisis. * British Airways confirmed that it will cut capacity by 90% year-on-year for April and May and furlough 30,000 cabin crew. * British Gas owner Centrica has joined the ranks of companies cancelling their dividends. It also announced £400m in spending cuts this morning. * National Express cancelled all of its services across the UK. And of course you can continue to follow all of our coverage of the coronavirus pandemic. In the UK, health secretary Matt Hancock says the government has written off £13.4bn of historic NHS debt:
* Oil prices surged as much as 35% on Thursday after President Donald Trump said he expected Saudi Arabia and Russia to reach a deal that could end their price war and likely mitigate a sharp price collapse. * Trump said he spoke with leaders in both countries as global demand for oil continues to evaporate while much of the world is in lockdown. * A Saudi Arabia-Russia pact is expected to scale back a supply surge that led to US oil tumbling to an 18-year low earlier this week. * Watch oil trade live here.
Oil rallied sharply on Thursday after President Donald Trump said he expected Saudi Arabia and Russia to cut back on oil production to save the drowning oil and gas industry. Brent crude oil jumped as much as 47%, to $36.29, while West Texas Intermediate crude rose 35%, to $27.39, at intrasession highs. The resource started rallying on Wednesday after Trump first signaled a potential agreement between Saudi Arabia and Russia. Trump provided different volume estimates in separate tweets, first mentioning a cutback of about 10 million barrels and then suggesting it could be "as high as 15 Million Barrels." Trump said on Wednesday that he believed a deal would be reached within days. Such a deal is expected to lower production and bring prices back up. Trump also said he had invited American oil executives to the White House to discuss measures to aid the oil industry, which has been hurt by a slump in demand due to both the coronavirus outbreak and the price war. The oil strategy meeting would include CEOs from Exxon, Chevron, Occidental Petroleum, Devon Energy, Phillips 66, and Energy Transfer Partners, as well as the former Continental Resources CEO Harold Hamm, according to CNBC.
*MKE Key Calls* *Malaysia Oil & Gas - Tactical upgrade to positive* The steep correction in share prices post the OPEC+ alliance breakup in Mar 2020 has made O&G stocks attractive again, from a valuation and sentiment perspectives. While the market remains volatile, it has priced in the demand, supply and price shock. Risk-reward opportunity has improved and O&G stocks are worthy of a trade. MKE tactically upgrades most of our recommendations to BUYs, a contrarian call ahead of any positive resolutions. A renewed alliance to cut output is a catalyst.
It's what Trump says, the other parties have not agreed to meet yet. Trump needed the money, buy a lot of energy stocks. Check oil futures lst before buying.
If oil recovers, oil & gas stocks will move up fast. But look at the fundamental stocks like banks, PBB still down. Coronovirus is still affecting all economies world wide. Companies reporting are not going to look good.
due heavy burden and market is brutality.. trump still open his card.. paktua need to be more tactical.. done sold back partially back from 0.08 and rest at 0.075.. secure back capital.. lock big good profit.. its only tactical step.. for more abilities to fight more later..
with balance share and level holding now.. paktua troops back on strong position to play more soon..
down more we got enough bullets to reloaded back.. if up more we will earn big more..
tut tut just stick with own methods.. play with own style..
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Keyman188
5,968 posts
Posted by Keyman188 > 2020-04-02 15:22 | Report Abuse
Haa....All cleared.......
Wait for next round..........