KUALA LUMPUR: Bursa Malaysia gapped up on Monday as oil prices retreated after US President Donald Trump signaled he could be attempting to free ships stranded in the Straits of Hormuz.
Brent crude futures for June delivery dropped 0.4% to hover near US$108 a barrel, extending the decline after having touched a high of US$126 a barrel last Friday.
The benchmark FBM KLCI rose 6.72 points to 1,728.74 in tandem with global optimism the energy crisis could be alleviated.
Sharing its market outlook for the near term, Apex Securities said the FBM KLCI is expected to remain range-bound amid the ongoing geopolitical conflict in the MIddle East and an evolving policy backdrop.
The research firm noted the elevated energy prices continue to reinforce inflationary pressures and dampen risk appetite.
"While the Federal Reserve’s decision to keep rates on hold provides some near-term relief, the broader policy environment remains uncertain, with markets closely monitoring the anticipated Fed leadership transition and potential shifts in the inflation framework under Kevin Warsh," it said.
Apex said the FBM KLCI is expected to trade defensively, with market focus shifting toward earnings guidance, particularly on cost pressures, margins and demand visibility.
Blue chips that rallied in early trade included PETRONAS Dagangan gaining 26 sen to RM20.44, IOI jumping eight sen to RM4.40 and Telekom Malaysia adding nine sen to RM7.57.
Top actives included SMRT up 1.5 sen to 18 sen, GIIB rising four sen to 15 sen and NovaMSC adding 0.5 sen to six sen.
Trading was muted in regional markets as Mainland China's and Japan's markets were shuttered for public holidays.
South Korea's Kospi rose 2.66% to 6,774 while Singapore's Straits Times was up 0.4% to 4,931.