Oil & gas counters rise after oil prices edged up

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KUALA LUMPUR (Jan 19): Oil & gas counters were among the top gainers today on the local bourse following a rebound in oil prices in the US.

At 11.03am today, Sapura Kencana Petroleum Bhd shares were up 4.8% or 12 sen to RM2.62 per share with 9.77 million shares done.

UMW Oil and Gas Bhd rose 3.85% or 10 sen to RM2.70 per share while Uzma Bhd shares rose 8.09% or 14 sen to RM1.87.

According to local analysts, there are no broad-based catalysts for the market at this point in time, and the rise is possibly short-term trading boosted by positive U.S stock markets.

An analyst at MIDF Research said no broad-based catalysts were apparent, at the moment, for the oil and gas industry.  

“You have to understand that a lot of the oil and gas stocks in Malaysia are not directly linked to oil prices. They are mostly service providers,” he added.

“We think people are still cautious at this point in time.

Another analyst observed that investors going into the market now could be holding for the longer term.

“It is whether people believe at the end of the day whether global oil prices will go up again,” said the analyst.

Reuters reported that the International Energy Agency (IEA) said that a reversal in trend was possible this year, but that prices may fall further before the market begins to rise again.