Petronas Chemicals, SapuraKencana, Sumatec gain on OPEC output cap

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KUALA LUMPUR (Sept 29): Petronas Chemicals Group Bhd, SapuraKencana Petroleum Bhd and Sumatec Resources Bhd rose after the Organization of the Petroleum Exporting Countries' verbal agreement to cap crude oil output.

Opec's move is deemed crucial to support crude oil prices at current levels at around US$47 (RM193) a barrel, compared with some US$112 in August 2013.
At 11:44 a.m. today, Sumatec rose 0.5 sen or 6% to nine sen to become Bursa Malaysia's most active stock. SapuraKencana climbed seven sen or 5% to RM1.57, to become the ninth most active stock.

At 11:48 a.m., Petronas Chemicals, the sixth-largest gainer, climbed 10 sen or 2% to RM6.70. Petronas Chemicals settled at RM6.69.

At 12:30 p.m., Sumatec and SapuraKencana settled at nine sen and RM1.56 respectively.

Bloomberg reported OPEC agreed to the outline of a deal that will cut production for the first time in eight years, surprising traders who had expected a continuation of the pump-at-will policy, which the group adopted in 2014 at the instigation of Saudi Arabia.

Oil jumped more than 5% in New York, after ministers said the group agreed to limit production to a range of 32.5 million to 33 million barrels per day.