Thursday 28 Mar 2024
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KUALA LUMPUR (July 1): Energy-related stocks on Bursa Malaysia advanced in heavy trading today, as oil prices jumped by over US$1 a barrel, on news the Organization of Petroleum Exporting Countries (OPEC) look set to be extending supply cuts until at least end-2019.

KNM Group Bhd and Bumi Armada Bhd were leading the pack of most active stocks, altogether accounting for one-fifth of Bursa’s total turnover.

At 3.30pm, KNM shares were up 3.5 sen or 13.7% to a six-month high of 29 sen, while Bumi Armada inched up one sen or 4.7% to 22.5 sen.

Other energy-related stocks on the most active list included Perdana Petroleum Bhd, Dayang Enterperise Holdings Bhd and Sapura Energy Bhd.

Perdana Petroleum was up 5.5 sen at 40 sen, while Sapura Energy shares rose one sen to 31 sen. Meanwhile, Dayang extended gains, as it rose another nine sen to trade at RM1.27 per share.

OPEC and its allies look set to extend oil supply cuts this week, at least until the end of 2019, as Iran joined top producers Saudi Arabia, Iraq and Russia in endorsing a policy aimed at propping up the price of crude, amid a weakening global economy, according to news reports.

Iranian Oil Minister Bijan Zanganeh was quoted as telling reporters that he would support prolonging output cuts by six to nine months. Tehran has in the past objected to policies put forward by arch-rival Saudi Arabia, saying Riyadh was too close to Washington, Reuters reported.

At the time of writing, Brent crude futures were up 2.95% at US$66.65 a barrel.

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