KUALA LUMPUR: The FBM KLCI edged towards the 1,700 psychological resistance amid a surge in crude oil prices as the US said it would reinstate a blockade of the Strait of Hormuz, casting fresh energy supply fears.

US President Donald Trump announced yesterday he would blockade the critical shipping channel and implement a 20% toll on all cargo passing through in exchange for security.

Brent crude futures for September delivery leapt 9.5% overnight to US$83.30 on the news. At the time of writing, the global benchmark for crude had escalated further to nearly US$85 a barrel.

Energy plays on Bursa Malaysia leapt higher, with heavyweights PETRONAS Chemicals and PETRONAS Dagangan offsetting the decline in other index blue chips.

The FBM KLCI was up 1.25 points to 1,699.69, with investors holding close to the 1,700 resistance in anticipation of further geopolitical developments.

According to Apex Securities, the FBM KLCI has extended its rebound after breaking the key resistance of 1,695. 

"The continued push above the 9-day, 20-day and 120-day moving averages suggests that near-term sentiment has improved further, although the index remains just below the key 1,700 resistance level," it said in its technical outlook.

"The bearish Double Top pattern remains technically valid until the index decisively breaks above the 1,700 - 1,720 resistance zone. 

"The broader uptrend remains intact as long as the index holds above the 1,674 support level. However, a break below this level would reinforce the bearish outlook and increase the likelihood of a retest of the 1,660 level."

Among the gainers on the FBM KLCI, PETRONAS Dagangan rose 22 sen to RM19.44, PETRONAS Chemicals climbed 21 sen to RM4.56 and Kuala Lumpur Kepong gained 10 sen to RM21.98. 

The most active market counters were Tanco, up two sen to 26 sen, Velesto

down 1.5 sen to 27 sen and Vinvest shedding one sen to two sen.