Latest news with #O&G
The Star
6 days ago
- Business
- The Star
Bursa Malaysia to trade at 1,500-1530 this week amid tariff and middle east tensions
KUALA LUMPUR (Bernama): Bursa Malaysia's key index is set to move between 1,500 and 1,530 nthis week, as markets remain under pressure amid concerns over Washington's planned unilateral tariff letters and escalating tensions following Israel's strike on Iran. UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research Mohd Sedek Jantan said markets are expected to remain vulnerable and trade lower in the near term, unless a meaningful breakthrough occurs over the weekend to de-escalate the conflict, an outcome he said appears unlikely. "From a tactical standpoint, oil and gas (O&G) stocks may present short-term trading opportunities, particularly those with upstream exposure or companies expanding their upstream concessions, as they stand to benefit directly from the current rally in oil prices,' he told Bernama. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said market participants are advised to closely monitor ongoing geopolitical tensions and any developments related to US President Donald Trump's stance on US-China trade tariffs. "We also believe the rise in crude oil prices could present opportunities for investors to explore O&G and commodity related stocks. We anticipate the benchmark index to trend within the 1,500-1,530 range, representing its support and resistance levels,' he added. Thong noted that if tensions continue to escalate, the second support level is projected at 1,485. For the week just ended, Bursa Malaysia kicked off in positive territory at the beginning of the week, driven by positive developments in the US-China trade negotiations, stocks accumulation by local institutions, and a slowdown in foreign selling activity. On a Friday-to-Friday basis, the barometer index rose 1.32 points to 1,518.11 from 1,516.79 a week earlier. The FBM Emas Index gained 14.84 points to 11,370.18, the FBMT 100 Index added 20.35 points to 11,144.04, and the FBM Emas Shariah Index climbed 0.31 of-a-point to 11,329.53. The FBM 70 Index increased 72.14 points to 16,368.71 while the FBM ACE Index fell 32.13 points to 4,487.19. Across sectors, the Industrial Products and Services Index was 0.55 of-a-point higher at 151.35 and the Energy Index gained 22.31 points to 740.76. The Plantation Index slid 31.93 points to 7,220.92, the Healthcare Index drooped 16.42 points to 1,777.72, and the Financial Services Index tumbled 60.06 points to 17,648.25. Turnover surged to 13.89 billion units worth RM10.61 billion from 9.80 billion units worth RM8.18 billion in the preceding week. The Main Market volume jumped to 6.42 billion units valued at RM9.47 billion against 4.50 billion units valued at RM7.21 billion previously. Warrants turnover expanded to 5.97 billion units worth RM687.92 million versus 4.07 billion units worth RM533.43 million a week ago. The ACE Market volume improved to 1.50 billion units valued at RM458.75 million compared with 1.22 billion units valued at RM432.22 million in the preceding week. - Bernama
New Straits Times
6 days ago
- Business
- New Straits Times
Bursa Malaysia to trade at 1,500–1,530 next week amid tariffs, Middle East tensions
KUALA LUMPUR: Bursa Malaysia's key index is set to move between 1,500 and 1,530 next week, as markets remain under pressure amid concerns over Washington's planned unilateral tariff letters and escalating tensions following Israel's strike on Iran. UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research Mohd Sedek Jantan said markets are expected to remain vulnerable and trade lower in the near term, unless a meaningful breakthrough occurs over the weekend to de-escalate the conflict, an outcome he said appears unlikely. "From a tactical standpoint, oil and gas (O&G) stocks may present short-term trading opportunities, particularly those with upstream exposure or companies expanding their upstream concessions, as they stand to benefit directly from the current rally in oil prices," he told Bernama. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said market participants are advised to closely monitor ongoing geopolitical tensions and any developments related to US President Donald Trump's stance on US-China trade tariffs. "We also believe the rise in crude oil prices could present opportunities for investors to explore O&G and commodity related stocks. We anticipate the benchmark index to trend within the 1,500-1,530 range, representing its support and resistance levels," he added. Thong noted that if tensions continue to escalate, the second support level is projected at 1,485. For the week just ended, Bursa Malaysia kicked off in positive territory at the beginning of the week, driven by positive developments in the US-China trade negotiations, stocks accumulation by local institutions, and a slowdown in foreign selling activity. On a Friday-to-Friday basis, the barometer index rose 1.32 points to 1,518.11 from 1,516.79 a week earlier. The FBM Emas Index gained 14.84 points to 11,370.18, the FBMT 100 Index added 20.35 points to 11,144.04, and the FBM Emas Shariah Index climbed 0.31 of-a-point to 11,329.53. The FBM 70 Index increased 72.14 points to 16,368.71 while the FBM ACE Index fell 32.13 points to 4,487.19. Across sectors, the Industrial Products and Services Index was 0.55 of-a-point higher at 151.35 and the Energy Index gained 22.31 points to 740.76. The Plantation Index slid 31.93 points to 7,220.92, the Healthcare Index drooped 16.42 points to 1,777.72, and the Financial Services Index tumbled 60.06 points to 17,648.25. Turnover surged to 13.89 billion units worth RM10.61 billion from 9.80 billion units worth RM8.18 billion in the preceding week. The Main Market volume jumped to 6.42 billion units valued at RM9.47 billion against 4.50 billion units valued at RM7.21 billion previously. Warrants turnover expanded to 5.97 billion units worth RM687.92 million versus 4.07 billion units worth RM533.43 million a week ago.
Malaysian Reserve
7 days ago
- Business
- Malaysian Reserve
Bursa Malaysia to trade at 1,500–1,530 next week amid tariffs, Middle East tensions
KUALA LUMPUR — Bursa Malaysia's key index is set to move between 1,500 and 1,530 next week, as markets remain under pressure amid concerns over Washington's planned unilateral tariff letters and escalating tensions following Israel's strike on Iran. UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research Mohd Sedek Jantan said markets are expected to remain vulnerable and trade lower in the near term, unless a meaningful breakthrough occurs over the weekend to de-escalate the conflict, an outcome he said appears unlikely. 'From a tactical standpoint, oil and gas (O&G) stocks may present short-term trading opportunities, particularly those with upstream exposure or companies expanding their upstream concessions, as they stand to benefit directly from the current rally in oil prices,' he told Bernama. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said market participants are advised to closely monitor ongoing geopolitical tensions and any developments related to US President Donald Trump's stance on US-China trade tariffs. 'We also believe the rise in crude oil prices could present opportunities for investors to explore O&G and commodity related stocks. We anticipate the benchmark index to trend within the 1,500-1,530 range, representing its support and resistance levels,' he added. Thong noted that if tensions continue to escalate, the second support level is projected at 1,485. For the week just ended, Bursa Malaysia kicked off in positive territory at the beginning of the week, driven by positive developments in the US-China trade negotiations, stocks accumulation by local institutions, and a slowdown in foreign selling activity. On a Friday-to-Friday basis, the barometer index rose 1.32 points to 1,518.11 from 1,516.79 a week earlier. The FBM Emas Index gained 14.84 points to 11,370.18, the FBMT 100 Index added 20.35 points to 11,144.04, and the FBM Emas Shariah Index climbed 0.31 of-a-point to 11,329.53. The FBM 70 Index increased 72.14 points to 16,368.71 while the FBM ACE Index fell 32.13 points to 4,487.19. Across sectors, the Industrial Products and Services Index was 0.55 of-a-point higher at 151.35 and the Energy Index gained 22.31 points to 740.76. The Plantation Index slid 31.93 points to 7,220.92, the Healthcare Index drooped 16.42 points to 1,777.72, and the Financial Services Index tumbled 60.06 points to 17,648.25. Turnover surged to 13.89 billion units worth RM10.61 billion from 9.80 billion units worth RM8.18 billion in the preceding week. The Main Market volume jumped to 6.42 billion units valued at RM9.47 billion against 4.50 billion units valued at RM7.21 billion previously. Warrants turnover expanded to 5.97 billion units worth RM687.92 million versus 4.07 billion units worth RM533.43 million a week ago. The ACE Market volume improved to 1.50 billion units valued at RM458.75 million compared with 1.22 billion units valued at RM432.22 million in the preceding week. — BERNAMA
Malay Mail
06-06-2025
- Business
- Malay Mail
MIDF Research: Oil prices under pressure as supply outpaces demand
KUALA LUMPUR, June 6 — Crude oil prices are expected to remain under pressure and could fall below US$65 per barrel (pb) due to persistent oversupply and weaker demand projections, according to MIDF Amanah Investment Bank Bhd (MIDF Research). However, MIDF Research noted that prices may stabilise over the longer term, even as inventories continue to rise. Sentiment surrounding trade policy developments between the United States (US) and China remains a significant risk to market movements, it said in a note today. 'Natural gas and liquified natural gas (LNG) are expected to see a rebound after May 2025's maintenance round concluded for most of the global gas and LNG facilities. 'Nevertheless, the downside risks to the lower oil price remain on new exploration projects, but may be beneficial for onshore storage, long-term tankers and retail fuel,' it said. MIDF Research opines that the scenarios of the global oil market and global economy will continue to keep Brent crude oil price within the US$60-65 pb range, averaging around US$62 pb in June 2025. 'This lower expectation is considering the risks of post-US trade tariff pause, as well as the stockpiling of oil inventories in the near term,' said MIDF Research. Meanwhile, the investment bank said Asean collaborations have offered a brighter outlook for the oil and gas (O&G) sector. MIDF Research stated that Petroliam Nasional Bhd (Petronas) is continuing its aggressive exploration and production (E&P) activities in the upstream sector, despite lower crude oil prices. Meanwhile, the midstream and downstream divisions are expected to turn towards sustainability and green energy solutions, integrating these initiatives into their operations. 'During the Asean summit that concluded in May 2025, the transportation and logistics of LNG and carbon capture and storage (CCS) were highlighted as strategic priorities for the region. 'More focus was set on renewable energy and hydrogen projects to be integrated with the conventional O&G developments, providing a balanced and sound energy transition as highlighted in Malaysia's National Energy Transition Roadmap (NETR),' it noted. MIDF Research added that regional cooperation is likely to expand through energy security, carbon credit management, Environmental Corporation America (ECA) compliance and CCS solutions. 'In addition, we opine that domestic demand and robust LNG exports will continue to locally support the sector. 'Overall, we retain a 'Neutral' view on the O&G sector, as it continues to face challenges, primarily from oil price volatility, driven by output hikes from the Organisation of the Petroleum Exporting Countries plus (OPEC+) and non-OPEC producers, including sluggish global demand due to tariff-related uncertainties,' it added. — Bernama
The Star
05-06-2025
- Business
- The Star
O&G sector earnings weakness to persist in 2Q
PETALING JAYA: Local companies involved in the oil and gas services and equipment (OGSE) industry could see lower offshore activities and jobs. This follows the shift in Opec's policies, which may result in lower capital expenditure (capex) anticipated from oil majors. Coupled with softer outlook displayed by oil & gas (O&G) companies during the recent first quarter of 2025 (1Q25), Maybank Investment Bank (Maybank IB) Research has downgraded the sector to Neutral from Positive. "Our Brent crude oil price assumption was also lowered to US$67 per barrel for 2025, from US$70 in our earlier May 6 report," the research firm said. The research firm said most O&G companies under its coverage met expectations but it expects softer outlook ahead. "Out of six Malaysia O&G stocks under coverage, Velesto Energy Bhd 's results came in above expectations due to higher-than-expected net margins driven by lower depreciation and cost optimisation initiatives. Bumi Armada Bhd missed expectations due to a recognition of a penalty to UK-based EnQuest due to certain asset specification issues. Results for other companies came in within expectations," it added. It noted that daily rates for renting rigs have peaked due to a higher rig supply as Saudi Arabia terminated over 20 rigs amid capex rationalisation programme by oil company Saudi Aramco. According to Maybank IB this was indicated in Velesto's updated rig schedule and its recent job wins in Vietnam & Indonesia. Meanwhile, it said Keyfield International Bhd and Perdana Petroleum Bhd stated subdued offshore activity and charter projects delayed in 1Q25 as compared to a year ago. This is a signal of softer operating environment ahead, said the research firm. There could be potential cuts to Petroliam Nasional Bhd (PETRONAS) spending due to the dispute between the former and Sarawak's Petros over the role of gas aggregator in Sarawak. In addition, lower crude oil prices could deter aggressive capex spending in general. Similarly, CIMB Securities lowered its sector rating to Neutral from an Overweight. Following the earnings weakness in 1Q25, it has revised 2025 sector core net profit growth forecast to -7.8% year-on-year, from +0.9% previously. "This suggests a reset to a lower earnings base, reaching a fresh low in the sector's declining earnings trend observed since 2021. "We anticipate earnings recovery to be gradual, constrained by structural challenges and company-specific headwinds," added CIMB. Where stocks are concerned its likes MISC Bhd for its stable earnings, backed by long-term contracts across its gas, petroleum, and offshore segments, as well as full earnings contribution from FPSO Mero 3 in 2025. The other stock it favours is Dialog Group Bhd , which has strong growth potential in Pengerang, Johor. It said the group has stable recurring income from storage terminals, with utilisation rates above 90% and spot rates of around SG$6.50 per cubic metre. There is also a potential turnaround in the group's engineering, procurement, construction, and commissioning (EPCC) and maintenance segments from the first half of financial year 2026 onwards. Dialog's valuation is also attractive at 20.1 times price-to-earnings, which is about 1 standard deviation below the 10-year mean of 28.1 times.
