Oil price surge lifts Petronas stocks as KLCI climbs

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At 9.15am, the FBM KLCI was up 10.61 points or 0.66% to 1,610.73.

Turnover was 911.94 million shares valued at RM400.30mil. The broader market was firmer with 521 gainers, 178 losers and 337 counters unchanged.

While most recovery plays in the banking, gaming, aviation and oil & gas sectors have been enjoying a steady rally since late January on vaccine optimism and may continue to garner strong interest due to their cheap valuation vis-à-vis their earnings growth potential, there should be some rotational interest into the undervalued property sector as well in the coming months.

“In terms of sales performance, eight property players that are being tracked, including the bigger ones like SP Setia,, IOI Property and Mah Sing, have witnessed aggregate sales increasing by 1.4% on-year and 19% on-quarter in fourth quarter of 2020. There was also upbeat news in Asia, as China's exports surged 155% in February compared with a year earlier when much of the economy shut down to fight the coronavirus.

Brent crude futures for May reached $71.16 a barrel in early Asian trade and were at $70.76 a barrel by 0036 GMT, up $1.40, or 2%.

 

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