Bursa energy shares fall as crude drops below US$100
Hengyuan shares lost 15.75 per cent, while Malaysia’s benchmark index advanced despite declines in energy and technology stocks.
Malaysia’s energy shares declined after crude fell below US$100 a barrel, a level not seen for six weeks, amid expectations of an easing in the US-Iran conflict. The Bursa Malaysia Energy Index finished at 806.47, losing 21.45 points, or 2.59 per cent.
Hengyuan Refining Company Bhd closed at RM3.05 after a fall of 57 sen, or 15.75 per cent. The refiner’s shares had more than quadrupled during the year as oil prices surged amid the conflict. Petron Malaysia Refining & Marketing Bhd ended at RM3.16, down nine sen, or 2.77 per cent.
Among the Main Market’s 35 listed energy counters, losses outnumbered gains: 17 fell, seven rose and 11 finished unchanged. Hibiscus Petroleum Bhd dropped 7.28 per cent, or 15 sen, to RM1.91.
The sector’s decline contrasted with gains in the broader market. The FTSE Bursa Malaysia KLCI reached 1,635.86 after adding 19.30 points, or 1.19 per cent. Technology shares also weakened, with their sector index closing at 71.14 following a fall of 3.17 points, or 4.27 per cent.
January-delivery Brent futures had dropped 8.7 per cent to US$94.62 a barrel, the lowest since Aug 31. The fall followed the Democrats’ US midterm election victory, which fuelled expectations of greater political pressure on President Donald Trump’s administration to end the Iran conflict.
