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Market Daily Report: Bursa Malaysia Gives Up Earlier Gains To End Mixed

KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
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Energy Stocks Rise as Oil Prices Surge Amid Middle East Tensions

 

Energy stocks led the gains on Bursa Malaysia on Monday, as oil prices climbed due to escalating tensions in the Middle East. The Bursa Malaysia Energy index, which tracks 22 oil and gas-related companies, saw an increase of up to 2% during morning trading, before settling at a 0.9% gain by the noon break, reaching 929.89 points. The global benchmark for crude oil, Brent, surged above $79 per barrel.

Key Drivers:

  1. Middle East Tensions: The ongoing conflict between Israel and Hezbollah has increased the risk of supply disruptions, which has driven up oil prices. Although the conflict has not yet significantly impacted oil production, the threat of further escalations has heightened market volatility.

  2. Oil Price Performance: Oil prices have been volatile throughout 2024, but recent gains have pushed prices up by 3.3% year-to-date. Analysts from Australia & New Zealand Banking Group expect continued volatility due to the geopolitical situation.

  3. Top Gainers:

    • Deleum Bhd: The stock rose by 5.97% to RM1.42, driven by better-than-expected quarterly results. Analysts have raised target prices for the stock, with the average target now at RM1.56.
    • Offshore Support Vessel Operators: Icon Offshore Bhd rose by 5.61% to RM1.09, while Perdana Petroleum Bhd increased by 2.74% to 37.5 sen. Dayang Enterprise Holdings Bhd, a major shareholder of Perdana Petroleum, saw a 1.98% rise to RM2.54.

  4. Broader Sector Gains: Other companies in the sector, including Uzma Bhd, Coastal Contracts Bhd, T7 Global Bhd, and Yinson Holdings Bhd, also experienced gains ranging from 1.88% to 2.51%.

  5. Petronas-Related Concerns: While the sector saw overall gains, there were concerns about potential declines in capital expenditure by Petronas following the takeover of all natural gas trading activities in Sarawak by state-owned Petroleum Sarawak Bhd. This could impact greenfield-related services contractors, though brownfield maintenance contractors and offshore support vessel operators are expected to remain resilient.

Outlook: The energy sector is benefiting from rising oil prices driven by geopolitical risks, but concerns over Petronas' future spending could cap some of the gains. Analysts remain cautiously optimistic, especially for companies involved in brownfield maintenance and offshore support operations.

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