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Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
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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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