KUALA LUMPUR (Dec 8): Shares in oil and gas related stocks on Bursa Malaysia fell in the morning session today in line with most global energy stocks after crude oil prices remained near 7-year lows.
Oil prices took a beating overnight after the Organisation of the Petroleum Exporting Countries (OPEC) failed to address a growing supply glut in a recent meeting.
Reuters reported that crude prices remained near 7-year lows on Tuesday as OPEC continues to pump near record oil to defend market share, compounding a glut that has seen hundreds of thousands of barrels produced every day in excess of demand.
The news did not bode well to Malaysia, as the falling oil prices will hurt the government income and country's economy.
At the point of writing, US Crude oil for January 2016 delivery was up 0.4% to US$37.80 per barrel, while Brent crude for January 2016 delivery was up 0.74% to US$41.03 per barrel.
In Malaysia, several oil and gas related stocks reacted negatively to the news, with Petronas Gas Bhd down as much as 42 sen or 1.8% to trade at RM22.90 as of 12.30pm midday break, after some 196,700 shares done, making it the top loser across the exchange.
Petron Malaysia Refining and Marketing Bhd shed 12 sen or 7.84% to settle at RM4.38, after 653,900 shares changed hands.
Bumi Armada fell four sen or 3.74% to trade at RM1.07, with a trading volume of 3.08 million shares.
Muhibbah Engineering (M) Bhd slid five sen or 2.11% at RM2.32, for a market capitalisation of RM1.09 billion.
SapuraKencana Petroleum Bhd was down one sen or 0.47% at RM2.12, after 1.67 million shares traded.
(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)