KUALA LUMPUR: Bursa Malaysia closed on a firmer note on Tuesday with the FBM KLCI up 0.52% on fund buying of Dialog, selected banking stocks, Top Glove and Genting while energy prices and crude palm oil futures rallied.
The FBM KLCI closed up 7.95 points at 1,530.42. Turnover was 3.97 billion shares valued at RM2.69bil. There were 469 gainers, 515 losers and 465 counters unchanged.
Firmer crude oil prices saw rising investor interest in energy stocks.
Reuters reported Brent crude oil futures stuck near three-year highs on Tuesday, with U.S. benchmark crude close to 2014 peaks, after the OPEC+ supplier group decided to stick to a gradual output increase plan rather than fully opening the taps.
Brent crude was up 51 cents or 0.6% at $81.77 a barrel by 0845 GMT, having rising 2.5% on Monday. U.S. West Texas Intermediate (WTI) oil rose 50 cents or 0.6% to $80.98, after gaining 2.3% the previous session.
Dialog was the most active among the KLCI stocks, rising 13 sen to RM2.44.
PetDag advanced 18 sen to RM19.10, MISC 17 sen to RM7.08, PetChem four sen to RM8.69 but PetGas lost 12 sen to RM16.78.
Among the lower liners, KNM was the most active, up 0.5 sen to 24 sen, Hibiscus 4.5 sen to 77 sen and Bumi Armada two sen to 48 sen.
Strong crude palm oil prices, where third month delivery surged past RM5,000 a tonne for the first time, pushed plantation stocks higher.
KLK closed up 20 sen to RM20.18, and PPB Group 10 sen higher to RM18.40, Sime Plantation five sen to RM3.66.
Public Bank rose three sen to RM4.06, CIMB two sen to RM4.72. However, HLFG fell 20 sen to RM18, RHB Bank eight sen lower RM5.30, HL Bank four sen to RM18.74 and Maybank two sen to RM8.01.
Hap Seng added 13 sen each to RM7.92 Top Glove rose nine sen to RM2.74 while Genting five sen to RM5.04,. Press Metal five higher to RM5.78.
Bernama quoted Rakuten Trade Sdn Bhd vice-president of Equity Research, Thong Pak Leng as saying bargain hunting was particularly seen in the oil and gas (O&G), banking and glove counters.
"The high crude oil price led to buying in the O&G counters, and banks are always a favourite when the market is up, while glove counters fell by quite a lot earlier, so people saw the opportunity for bottom fishing,” he told Bernama.
Thong noted that key regional markets had ended broadly lower following the overnight losses on the Wall Street amidst concerns over rising yields.
He said some investors were cautious as oil prices have surged to a three-year high of above US$81 per barrel, which could spark inflation.
"Nevertheless, we reckon this will provide buying catalysts for our O&G counters,” he said, adding that the accumulation of stocks is expected to persist on dips as the KLCI seems to be quite well supported at between 1,520 and 1,530.