KUALA LUMPUR: Bursa Malaysia pulled back as traders reacted to the conflict in the Middle East, which is expected to dirupt crude supply and sap risk appetite for equities.
The FBM KLCI gapped down 27.97 points to 1,688.64, firmly below the 1,700 psychological support, following the surprise attack on Iran over the weekend by US and Isreali forces.
Apex Research noted that Opec+ has signalled a modest increase in crude output to stabilise the market. However. it said the additional supply may only partially offset disruption risks should tensions escalate further.
"Crude prices have turned more volatile, with tail risks skewed to the upside in a scenario of sustained supply constraints, particularly around the Strait of Hormuz.
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