Oil & gas stocks on Bursa extend bullish run

PETALING JAYA: Oil and gas (O&G) stocks, particularly refiners, continued to draw strong interest on the local bourse yesterday, after global crude oil prices hit the US$60 (RM244) level.
Hengyuan Refining Co Bhd and Petron Malaysia Refining & Marketing Bhd were among the top gainers on Bursa Malaysia.
Hengyuan, which has jumped more than sevenfold year to date, surged RM1.46 or 8.85% to RM17.96 with 6.7 million shares traded, giving it a market capitalisation of RM5.2 billion.
Analysts said investors’ confidence in the refiner’s stock was buoyed by the recovery in global oil prices and that it had returned profitable in its third quarter ended Sept 30, 2017 on improved refining margin.
Rising in tandem with the mother stock were warrants Hengyuan-CK (+18.1%), Hengyuan-CA (+9.2%), Hengyuan-CB (+8.8%), Hengyuan-CE (+8.3%).
Meanwhile, Petron shares closed 74 sen or 5.34% higher at RM14.60 on 1.03 million shares done.
In a note today, Kenanga Research said Petron’s share price is poised for the next climb, citing that the positive hook-up in key indicators further supports the overall bullish technical outlook.
“From here, we believe Petron is on a clear path higher towards the RM13.50 resistance level and RM15.72. Conversely, the immediate support level can be found at RM12.60 and further below at RM11.28,” it added.
The top active O&G stocks were Sapura Energy Bhd, Hibiscus Petroleum Bhd, UMW Oil & Gas Corp Bhd and Dialog Group Bhd.
Brent crude hit US$67 per barrel earlier this week, the highest since mid-2015, after it peaked above US$60 per barrel for the first time in more than two years on Oct 28 following an explosion at a Libyan crude oil pipeline.
The surge in global oil prices was supported by the extension of output cuts by the Organisation of the Petroleum Exporting Countries (Opec) and non-Opec allies until the end of 2018.