KUALA LUMPUR (June 12): Malaysian oil and gas (O&G) stocks fell in active trade this morning, dragged by crude oil's second consecutive day of decline as the prospects of a second wave of Covid-19 spooked global markets.

At the time of writing, the Bursa Malaysia Energy Index was the worst hit, down by 6.21% ahead of the FBM KLCI's 2.52% decline and the 4.66% fall in the FBM Small Cap Index.

It retreated to 772.93 points, still down 5.75%. The sector benchmark was however still off the March-low of 531.17 points by some distance.

The top decliner in the sector was Petronas Dagangan Bhd, down 48 sen or 2.18% to RM21.52.

Yinson Holdings Bhd fell 45 sen or 6.98% to RM6, followed by Petronas Chemicals Group Bhd, down 33 sen or 4.93% to RM6.37.

Other big decliners included Petronas Gas Bhd, which fell 22 sen or 1.24% to RM17.56. Refiner Petron Malaysia Refining & Marketing Bhd also fell 22 sen or 5.1% to RM4.09.

O&G counters also crowded the top active counters, led by KNM Group Bhd (down two sen or 8.7% to 21 sen with 42.89 million shares traded), asset operator Hibiscus Petroleum Bhd (down 5.5 sen or 8.33% to 60.5 sen with 41.13 million shares traded) and Bumi Armada Bhd (down two sen or 8.16% to 22.5 sen with 39.19 million shares traded).

Other active stocks included rig operator Velesto Energy Bhd (down one sen or 6.06% to 15.5 sen) and Sapura Energy Bhd (down half a sen or 5% to 9.5 sen).

At the time of writing, Brent crude oil spot price fell for a second day by US$1.21 to US$37.34/bbl, which pundits attributed to a slew of negative news, namely rising US crude inventories and signs of a resurgence in Covid-19 active cases that is expected to again hit demand.

Meanwhile, the gloomy economic outlook from the US Federal Reserve, which has declared it will keep its benchmark interest rate as low as possible without going negative through 2022 — a declaration that caused Wall Street to plunge yesterday and is seen to drag Asian markets today.