Friday 29 Mar 2024
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KUALA LUMPUR (May 12): Bursa Malaysia’s Energy index, which tracks oil and gas (O&G) companies’ share prices, rose about 2% on Thursday (May 12) to become the top percentage gainer among the bourse’s 30 gauges following crude oil prices' 6% overnight jump on Wednesday due to crude oil market uncertainty after flows of Russian gas to Europe dropped and as Russia sanctioned some European gas companies at a time when there is no end in sight to the Russia-Ukraine war, which began on Feb 24, 2022.

It was reported that US crude oil futures settled at US$105.71 per barrel, up U$5.95 or 5.96% overnight on Wednesday, while Brent crude oil futures settled at US$107.51 a barrel, up US$5.05 or 4.93%.

"Oil prices eased in early Asian trade on Thursday, taking a pause after rising more than 5% in the previous session following new Russian sanctions on some European gas companies. Brent crude futures fell nine cents to US$107.42 a barrel by 0013 GMT. WTI crude futures fell 13 cents to US$105.58 a barrel.

"Prices have risen over 35% so far this year, bolstered by supply concerns after Russia's invasion of Ukraine in February,” Reuters reported.

On Thursday, an analyst told theedgemarkets.com that the Bursa Energy index’s gain followed crude oil prices’ rise in overnight Wednesday trades.

“I expect the [prices of] O&G stocks [on Bursa] to [be] range bound depending on the Russia-Ukraine geopolitical development,” the analyst said.

At Bursa’s 12:30pm break on Thursday, Bursa’s Energy index settled up 16.16 points or 2.08% at 792.42 to be the top percentage gainer among the bourse’s 30 gauges.

Worst hit was the Technology index which fell 2.96% while the FBM KLCI rose 0.07%.

At a glance, Energy index components Hengyuan Refining Company Bhd and Petron Malaysia Refining & Marketing Bhd's share prices settled up among Bursa top gainers.

Hengyuan climbed 44 sen or 6.54% to RM7.17 while Petron Malaysia rose 29 sen or 4.83% to RM3.96 to become Bursa’s second and fourth largest gainers respectively.

Edited ByChong Jin Hun
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