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KUALA LUMPUR (September 18): The FBM KLCI closed 6.73 points or 0.44% higher at 1,519.8 in the Bursa Malaysia afternoon break today, as crude palm oil futures ( CPO) rose past RM3,000 a tonne amid higher crude prices.
In Bursa, at 12.30pm, 3.88 billion securities were traded for RM2.39 billion.
The main beneficiaries were the shares of KLCI, Petronas Dagangan Bhd and Kuala Lumpur Kepong Bhd (KLK), as investors took the example of higher crude prices, which generate expectations of higher demand for CPOs to produce biodiesel.
The share price of winning leader Petronas Dagangan rose 50 sen or 2.46% to RM 20.82, while KLK added 20 sen or 0.88% to RM 22.90.
The CPO for October 2020 was set at RM73 to RM3,078 per ton, while the CPO for November 2020 increased from RM80 to RM3,076.
In crude oil markets, crude was reported to have made strong gains after the Organization of the Petroleum Exporting Countries (OPEC) and its allies said the group would take action on members who fail to comply with deep production cuts.
Brent crude futures were 0.2% firmer at $ 43.39 a barrel and US crude futures rose by the same margin at $ 41.04 a barrel, Reuters reported.
As investors weighed the impact crude oil and crude palm oil prices would have on stocks, they were still aware of the Covid-19 pandemic and its effects on the rubber glove and healthcare industries.
Covid-19 has raised expectations of increased demand for rubber gloves to slow the spread of the pandemic, in addition to expectations for Covid-19 vaccines to prevent future infections.
“The local market should extend the consolidation of profit taking before the weekend as investors take in the outlook for the rubber glove and healthcare industries amid accelerating vaccine development,” wrote TA Securities Holdings Bhd. on a note today.
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