Malaysia's Economic Fundamentals Intact Despite Volatility In Oil Market -- CIMB Group Chief Executive

KUALA LUMPUR, Dec 3 (Bernama) -- Malaysia's underlying economic fundamentals continue to be strong despite the apparent free fall in global crude oil prices which roiled markets worldwide including the local equity and currency markets. "The economy remains strong but the country does not operate in isolation, making its markets vulnerable to falling oil prices," CIMB Group's Chief Executive, Tengku Zafrul Tengku Abdul Aziz, said here Tuesday. He said Bursa Malaysia's bearish performance -- particularly oil and gas-related counters Monday, was mainly due to Malaysia being a major investment destination for oil and gas (O&G) players. As a result, what happened in external economies, especially the O&G sector, would normally influence investor sentiment locally. "Malaysia has been a strong destination for O&G companies to be listed, especially O&G support services companies. "They (O&G firms) are not immune to what is happening right now and we don't know where it is heading. "It depends on global developments," he told reporters after the CIMB Asean Stock Challenge-National Level awards presentation ceremony here Tuesday. Also present were Youth and Sports Minister Khairy Jamaluddin, Bursa Malaysia Chief Executive Officer Tajuddin Atan and Talent Corp Malaysia Chief Executive Officer Johan Merican. Crude oil prices, now hovering at US$68 per barrel, are at five-year lows following the Organisation of Petroleum Exporting Countries's (Opec) decision last week not to cut production despite excess supply. Analysts feared that the prices now, seemingly on a free fall, could deteriorate further to as low as US$40 per barrel, a level last reached some 30 years ago. Prices had also fallen to a historic low of US$12 per barrel in the 1980's, again due to over-production and Opec's refusal to cut production then. However, O&G counters, which fell heavily Monday on Bursa Malaysia, recovered today on bargain-hunting. Petronas Gas closed 10 sen higher at US$6.13 (RM21.10), Petronas Chemicals gained 37 sen to RM5.50, Petronas Dagangan perked 14 sen to RM14.78 and SapuraKencana added five sen to RM2.56. (US$1 = RM3.44) The competition tested participants' ability to trade in stocks with a virtual start-up capital of US$80,000 in four major Asean stock markets -- Bursa Malaysia, Indonesia Stock Exchange, Singapore Exchange and Stock Exchange of Thailand. StocksElite, the team from HELP University, emerged as the Malaysian champion and now advances to compete with the national champions from four other countries for the regional champion title and US$12,000 grand prize at the grand finale in Thailand. -- BERNAMA