KUALA LUMPUR (Sept 1): Malaysian energy stocks rallied to their highest in three months on Tuesday as renewed turmoil in the Middle East pushed oil prices higher.
Hengyuan Refining Company Bhd (KL:HENGYUAN) surged as much as 30%, the maximum allowed rise in a single day. The company — which refines crude into liquefied petroleum gas, gasoline, and diesel — closed at its upper limit of RM2.53 after more than 19.44 million shares changed hands.
The Bursa Malaysia Energy Index, which tracks nearly three dozen stocks in the sector, posted the highest percentage gain of more than 1% to close at 791.26, following a strong earnings season for several companies last week. Others that also surged include the transportation and logistics, real estate investment trust, and plantation indices.
Tuesday's surge bucked the broader market decline, as the FBM KLCI dropped 1.47% to 1,700.54 — its lowest level in nearly two months. The industrial products and services index became the largest decliner, dropping 2.47% to 190.16 points.
Persistent disruption at the critical Strait of Hormuz could lift oil prices per barrel back towards US$90 in the near term, Hong Leong Investment Bank warned on Tuesday, noting that the base case is for an average of US$80 this year.
Further, capital expenditure at PETRONAS for upstream will rise next year alongside energy security investments across the region, the research house said and kept the sector rating on ‘overweight’.
Brent, the global benchmark for crude oil, was trading around US$91 per barrel.
Hengyuan returned to the black with a second-quarter net profit of RM600.54 million and resumed paying dividend for the first time in four years. The stock is not covered by any analyst.
Hibiscus Petroleum Bhd (KL:HIBISCS) climbed to an intraday high of RM2.26 before closing at RM2.25, still 9.76% higher, after beating consensus earnings estimates by about 40% thanks to higher realised prices amid the Iran war. MISC Bhd (KL:MISC), meanwhile, gained 0.38% to RM7.95 with higher charter rates and more earnings days.
Oil prices could exceed US$100 per barrel under a more severe escalation that disrupts regional oil production or flows through the Strait of Hormuz, TA Securities said and raised its Brent crude forecast to US$90 per barrel for 2026.
However, the research house maintained its 'neutral' call on the oil and gas sector, flagging uncertainty over whether the elevated oil prices can be sustained.