Bursa Malaysia opened higher on Thursday, following a rally in global equities. Falling international oil prices and improved investor sentiment after the US midterm elections helped support the local market.
News details
- The FBM KLCI rose 6.72 points to 1,623.28 at the opening.
- Brent crude futures for January delivery fell by 8.7% overnight to approximately US$94.62 per barrel.
- Investors were encouraged by expectations that political developments in the United States could support diplomatic efforts to resolve the Middle East conflict.
- Lower oil prices may ease concerns about global inflation and energy-related costs.
- Banking stocks recorded gains:
- Maybank rose 14 sen to RM10.04.
- Hong Leong Bank gained 26 sen to RM21.50.
- RHB Bank increased seven sen to RM7.80.
- AmBank rose 15 sen to RM6.63.
- CIMB gained 12 sen to RM7.03.
- Airline-related shares also attracted interest as lower fuel prices could reduce operating expenses.
Business and economic impact
- Lower oil prices could reduce transportation, logistics and manufacturing costs.
- Airlines and companies with high fuel consumption may benefit from reduced operating expenses.
- Lower energy costs could help ease inflationary pressure.
- Improved investor confidence may encourage more investment in Malaysian equities.
- However, oil-producing companies may face pressure on revenue if crude prices remain low.
What to watch: Whether the market can maintain its upward momentum and how BNM’s OPR decision affects banking and investment sentiment.