KUALA LUMPUR: Bursa Malaysia's energy stocks surged in morning trade as escalating tensions in the Middle East pushed Brent crude above the US$100 per barrel mark.
At 9.36am, the Bursa Malaysia Energy Index rose to a one-year high of 817.29, up 22.02 points or 2.77 per cent, bucking the broader market's sluggish performance amid heightened uncertainty as the US-Israel war with Iran entered its 10th day.
Earlier, the 32-stock index climbed as much as 37.78 points, or 4.75 per cent, to 833.05, its highest level since Jan 27, 2025, with more than 250 million shares changing hands.
Handal Energy Bhd and Hengyuan Refining Company Bhd led the gains, rising 1.5 sen, or 33.33 per cent, to six sen and 37 sen, or 21.89 per cent, to RM2.06, respectively.
Other strong gainers included Hibiscus Petroleum Bhd, which climbed 33 sen, or 16.1 per cent, and Petra Energy Bhd, up 8.5 sen, or 13.49 per cent, to 71.5 sen.
Meanwhile, Perdana Petroleum Bhd, Vantris Energy Bhd, Bumi Armada Bhd, Dialog Group Bhd, Uzma Bhd, Reservoir Link Energy Bhd and Carimin Petroleum Bhd rose between five per cent and 10 per cent.
Stocks that posted gains of less than five per cent included Malaysia Marine and Heavy Engineering Holdings Bhd, Dayang Enterprise Holdings Bhd, Petron Malaysia Refining & Marketing Bhd, Deleum Bhd, Alam Maritim Resources Bhd and T7 Global Bhd.
The rally in energy stocks came amid a sea of red across the broader market, with the FTSE Bursa Malaysia KLCI slipping below the 1,700 level, a threshold that had earlier raised hopes of a more bullish trajectory for the local bourse.
At the time of writing, the benchmark index was down 47.87 points, or 2.79 per cent, to a two-month low of 1,670.19, after opening 18.93 points, or 1.10 per cent, lower at 1,699.13. Energy and plantation were the only sectoral indices in the green.
Crude oil prices surged past US$100 per barrel for the first time in more than three and a half years as the war involving Iran disrupted production and shipping in the Middle East, the Associated Press reported.
At 10.34am, Brent crude was trading at US$117.30 per barrel, up 26.52 per cent, while West Texas Intermediate rose 28.62 per cent to US$116.90 per barrel.
Public Investment Bank Bhd (PublicInvest) said Brent crude is likely to remain above US$100 per barrel over the next five months as the conflict in the Middle East escalates.
In a research note, the firm upgraded its call on the oil and gas sector to "Overweight", citing rising supply risks stemming from restricted access to the Strait of Hormuz.
"Our base case assumes Brent remains above US$100 per barrel over the next five months. This reflects the time required to restore shipping confidence, the gradual drawdown of global inventories to absorb supply disruptions, and the persistent elevation of geopolitical risk premiums," it said.
PublicInvest said the energy sector is likely to be the main beneficiary of the situation, while maintaining a neutral stance on plantation stocks with a positive bias.
Sectors expected to be negatively affected include airlines, construction, automotive and glove makers.