FBM KLCI drifts slighly lower in anticipation of OPR decision
The benchmark index dropped 2.97 points to 1,546.93 as investors sat by the sidelines even as regional markets climbed as Trump suggested he had struck his first trade deal amid the ongoing tariffs war.
There were an equal number of advancing issues to declining - with 413 stocks on each side of the ledger- as the market kept to a holding position.
Volume was 2.18 billion shares changing hands for RM1.33bil.
Blue chips that were dragging on the main index included Nestle down 38 sen to RM87.06, Kuala Lumpur Kepong down 32 sen to RM19.60 and PPB dropping 16 sen to RM12.10.
Asian markets rose on Thursday, alongside US futures, in anticipation of details over Trumps' trade deal, which the New York Times claims was made with Britain.
Japan's Nikei rose 0.35% to 36,909 while China's composite index added 0.38% to 3,355.
Hong Kong's Hang Seng climbed 1.1% to 22,941. Singapore's Straits Times rose 0.2% to 3,873.
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New Straits Times
2 hours ago
- New Straits Times
For oil markets, the Ukraine outcome is insignificant
UNITED States President Donald Trump's high-stakes diplomacy to resolve the war in Ukraine is unlikely to jolt oil and gas markets, no matter the outcome. Russia has faced multiple rounds of Western sanctions and restrictions since its invasion of Ukraine in February 2022, which have dealt severe blows to the country's giant oil and gas industry. These measures have sapped Moscow of vital revenue and reshaped global energy markets. Russian gas now accounts for just 18 per cent of European imports, down from 45 per cent in 2021, while the bloc's oil imports from Russia have fallen to three per cent from around 30 per cent over that time. The European Union plans to fully phase out Russian energy by 2027. Kpler data shows Russian crude made up about 38 per cent of India's total crude imports in recent months, up from 16 per cent in 2021. China and Turkiye have also ramped up their Russian oil purchases. The war in Ukraine has left over a million dead or wounded, so its conclusion would be welcomed by many. Energy markets, however, are not apt to register much of a reaction unless there is a full ceasefire along with the lifting of all US and European sanctions. And that is a long shot. Given the more probable set of scenarios, oil and gas markets are unlikely to be rattled by the fallout from either last Friday's disappointing summit between Trump and Russian President Vladimir Putin or the US president's meeting with his Ukrainian counterpart Volodymyr Zelenskyy and European leaders on Monday. Full peace in Ukraine remains highly improbable. Trump might pressure Zelenskyy into accepting a temporary or partial halt in fighting. But even then, Europe is unlikely to resume Russian energy imports while Putin remains in power. Before 2022, Europe accounted for nearly half of Russia's 4.7 million barrels per day (bpd) of oil exports and 75 per cent of its gas exports, according to the US Energy Information Administration. The Trump administration could attempt to ease some sanctions unilaterally, but this could face opposition in Congress unless a broad peace deal is reached. Perhaps the more likely scenario — Trump failing to broker a deal — also shouldn't have a major impact on energy markets. The US could tighten sanctions, particularly by targeting buyers of Russian energy, as Trump has already threatened. But the US president said on Friday he would delay so-called "secondary sanctions" on China due to what he described as "successful" talks with Putin. Of course, India already faces secondary tariffs over its Russian oil purchases. Earlier this month, Trump announced a 25 per cent tariff on Indian goods, citing the country's continued oil imports from Russia. The new tariff, effective Aug 27, will bring total tariffs on Indian imports to 50 per cent. But even though Indian buyers already appear to be reducing their Russian oil purchases, the impact on global supplies has been minimal as China has increased its intake of Russian crude. Ultimately, China matters far more in this story, not least because it considers its relationship with Moscow to be strategic. Chinese and Russian oil producers, refiners and traders have already built a sprawling network of tankers and insurers to circumvent Western sanctions on Venezuela, Iran and Russia. Additionally, US tariffs on Chinese goods already average 55 per cent, according to the Peterson Institute for International Economics. Additional tariffs could raise costs for US consumers, and Beijing could retaliate, potentially by withholding rare earths or other critical minerals, all outcomes Trump would want to avoid — and Beijing knows this. Crucially, oil and gas markets appear to be entering a period of oversupply, meaning any possible disruption in Russian volumes can easily be offset. The International Energy Agency expects oil supply to exceed demand by 1.76 million bpd this year and by three million bpd in 2026, driven by rising output from OPEC+ and the Americas. Global liquefied natural gas markets are also expanding rapidly, with new supply coming online in the coming years across the US, Qatar, Canada, and elsewhere. While Trump's foreign policy remains unpredictable, a few things seem clear. He can't, as he once claimed, end the Ukraine war in one day, and what he can do is unlikely to have much of an impact on oil and gas markets.
The Star
3 hours ago
- The Star
African Energy Chamber opens int'l office in China's Shanghai
CAPE TOWN, Aug. 21 (Xinhua) -- The African Energy Chamber (AEC) has officially opened an international office in Shanghai, China, aimed at strengthening cooperation between African governments, energy companies, and their counterparts in the Asian country. According to a statement issued by the AEC on Thursday, the Shanghai office will be led by Bieni Da, chief representative of the AEC in China, who is tasked with ensuring that the chamber plays a pivotal role in connecting Chinese businesses and government entities with African stakeholders. "The objective is clear: to drive impactful, long-term collaboration across strategic sectors of the economy, enabling investments that are mutually beneficial and aligned with both continents' development goals," it said. The AEC, an energy advocacy group based in South Africa, was founded in 2018 with the mandate to promote sustainable investment and best practices within the energy sector in Africa. In the statement, the AEC noted that despite the continent's high energy demand, many African energy firms struggle to access the capital needed to scale operations and boost production. The chamber added that its Shanghai office will play an instrumental part in connecting Chinese companies with African projects, facilitating partnerships, and bringing African opportunities to the Chinese market. "The AEC wants to see greater Chinese investment across the entire African oil and gas value chain -- from upstream projects to downstream infrastructure to manufacturing, power, and technology. China offers significant expertise in these areas, and the Shanghai office will unlock new collaborative opportunities in artificial intelligence, electric vehicles, renewable energy, and more," NJ Ayuk, executive chairman of the AEC, said in the statement. The AEC will also organize high-level investment forums in Shanghai to foster continued dialogue and engagement. "Africa and China have a common goal: to eradicate energy poverty. It is time to walk the walk and bring Chinese expertise and capital to African projects... This office is a testament to making sure we leave our footprint," Ayuk added.
The Star
7 hours ago
- The Star
India makes a caveated pledge to continue buying Russian oil
NEW DELHI: India pledged - with a caveat - to keep buying Russian oil, a step that would preserve a vital market for Moscow's barrels. Purchases will continue "depending on the financial benefit,' Vinay Kumar, India's ambassador in Moscow, said in an interview with Russia's Izvestia newspaper. "India buys what is best for itself,' he added. While it's not an outright pledge that the South Asian nation will keep Russian oil purchases steady if higher US tariffs kick in next week, it's the latest example of how souring relations between India and the US have pushed New Delhi closer to Moscow. India has ramped up oil imports from Russia since the full-scale invasion of Ukraine began in 2022, when Group of Seven nations imposed a $60-per-barrel price cap on Moscow's crude that aimed to limit the Kremlin's energy revenue. The Trump administration sees those purchases as helping fund Russia's war, with the US president threatening to raise India's tariffs to 50% on Aug. 27, among the highest on any country's products. India accounts for 37% of Russia's oil exports, according to Moscow-based Kasatkin Consulting. Russia expects India's imports of its crude to remain at current levels, as Moscow sells oil to India at about a 5% discount, leaving Asia's third-largest economy with few alternatives, Evgeny Griva, Russia's deputy trade representative in India, said on Wednesday. India's state refiners have resumed buying Russian Urals after a brief pause earlier this month. Moscow will continue to supply crude, petroleum products and coal to India and sees potential to export liquefied natural gas, First Deputy Prime Minister Denis Manturov said Wednesday (Aug 20) at a meeting with Indian officials, including External Affairs Minister Subrahmanyam Jaishankar and Federal Oil Secretary Pankaj Jain. Jaishankar said the two countries must remove trade bottlenecks and reduce non-tariff barriers to reach the goal of increasing their annual trade by about 50% over the next five years to reach $100 billion. He met his Russian counterpart Sergei Lavrov on Thursday. "We have good results in cooperation in the hydrocarbon sector, in the supply of Russian oil to the Indian market, and we have a mutual interest in implementing joint projects to extract energy resources,' including in Russia's Far East and Arctic waters, Lavrov said at a joint press conference. "In general, the economic base of our especially privileged strategic partnership is strengthening steadily and progressively.' Russia is India's fourth-largest trading partner, while India is Russia's second-largest. - Bloomberg
