KUALA LUMPUR, June 5 (Bernama) -- Bursa Malaysia closed higher, with the benchmark index rising 0.60 per cent as bargain-hunting persisted following the recent sell-off, despite weaker performances across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 10.17 points to 1,693.43 from Thursday's close of 1,683.26. The benchmark index opened 3.19 points higher at 1,686.45 and traded between 1,684.36 and 1,698.53 during the trading session. However, broader market sentiment remained negative, with losers outnumbering gainers 666 to 477. A total of 574 counters were unchanged, 958 untraded and 12 suspended. Turnover fell to 3.41 billion units worth RM3.04 billion from 3.47 billion units worth RM3.58 billion on Thursday.
Shares of Dagang NeXchange Bhd (DNeX) soared on Monday, spiking as much as 6.02% to 44 sen after securing a significant small field asset cluster production sharing contract (SFA cluster PSC) from Petroliam Nasional Bhd (Petronas).
Key Takeaways:
Stock Performance:
- DNeX's shares rose 2.5 sen or 6.02% to 44 sen in the morning session.
- By 10:15 am, the stock was trading at 43.5 sen, up 4.82%, with a market capitalization of RM1.49 billion.
- Trading volume reached 15.45 million shares.
Analyst Recommendations:
- DNeX holds one “buy” and one “hold” call, with a 12-month target price (TP) of 50 sen (Bloomberg).
Contract Details:
- DNeX’s subsidiary Ping Petroleum Sdn Bhd secured the SFA cluster PSC from Petronas, covering the Bubu, Bunga Tasbih, and Enau fields.
- The contract tenure is for 14 years starting from July 1.
Petronas Award Overview:
- Part of Petronas' PSCs for three clusters of discovered resource opportunities under the Malaysia Bid Round Plus Round I.
- Covers 12 oil and gas fields in the Malay basin, promising synergistic development opportunities.
Other Winners:
- Hibiscus Petroleum Bhd’s unit Hibiscus Oil & Gas Malaysia Ltd secured a 65% interest and operatorship in the PSCs.
- Hibiscus shares slipped 1.24% to RM2.39, with a market value of RM1.92 billion.
Market Sentiment:
- Hong Leong Investment Bank (HLIB) remains neutral, predicting no immediate material impact on DNeX and Hibiscus until further announcements on final investment decisions (FIDs).
Company Focus:
- Ping Petroleum is concentrating on the Abu cluster (first oil expected in 1H2025) and the Meranti cluster.
- Hibiscus is focusing on the Teal West (UK) and SF Water Flood Phase 2 (Sabah), alongside its MLJ field acquisition in Brunei.
Sector Outlook:
- HLIB maintains a “hold” call for DNeX (TP of 43 sen) and a “buy” call for Hibiscus (TP of RM3.36).
- The oil and gas sector remains “overweight” due to elevated oil prices, Opec+ production cuts, geopolitical tensions, and slowing oil production growth.
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