KLCI gains 13.28 points as Middle East conflict appears to ebb

KUALA LUMPUR (Jan 7): The FBM KLCI gained 13.28 points or 0.83% to close at 1,611.04 today, as the apparent easing of the Middle East geopolitical tension following the US' air strike in Iraq, supported global shares' rise.

Crude oil prices however fell, amid apparent easing of the geopolitical tension.

According to Rakuten Trade Sdn Bhd research vice president Vincent Lau, the KLCI's gain today was on account of investors tempering their expectations that the US' drone strike which killed top Iranian commander Qassem Soleimani on Friday, will become a full-blown war.

Reutersreported Asian shares rebounded on Tuesday, as investors' reassessed the risk of an all-out conflict between the US and Iran, while Wall Street battled back to the black, as tech stocks climbed.

It was reported that oil surrendered hefty gains, as some speculated Iran would be unlikely to strike against the US in a way that would disrupt supplies, and its own crude exports. It was reported that Brent crude fell as much as 1.5% to US$67.86 a barrel and was at US$68.39, down 52 cents at 0737 GMT.

In Malaysia, Lau told theedgemarkets.com: “Today’s (KLCI) performance is also in line with gains posted in other key regional markets. In addition, the price of oil has slightly dipped."

At 5pm today, the KLCI closed up after falling 13.62 points or 0.85% to 1,597.76 yesterday, as the US' air strike in Iraq dented global equity investor sentiment.

Across Bursa Malaysia, 2.99 billion shares worth RM1.8 billion were traded. A total of 441 counters registered gains, while 388 declined.

Top gainers included KLCI stocks PPB Group Bhd, Axiata Group Bhd and RHB Bank Bhd.

Most-active stocks included oil and gas-related Alam Maritim Resources Bhd and Sapura Energy Bhd.

Top-active stock Alam Maritim registered a volume of some 192 million shares. Its share price closed down 0.5 sen or 2.7% at 18 sen.