Energy stocks fall on profit taking as oil prices tumble

Energy stocks fall on profit taking as oil prices tumble
-A +A

KUALA LUMPUR (Sept 29): Energy stocks fell on profit taking on Wednesday as crude oil prices dipped.

At the noon break, the Bursa Energy Index, which tracks share prices of oil and gas (O&G) related companies, had slid 8.03 points or 1.06% to 746.18. It earlier dropped to an intraday low of 740.31.

Petron Malaysia Refining & Marketing Bhd lost 13 sen or 2.93% to RM4.31. It earlier fell to an intraday low of RM4.30.

Hengyuan Refining Company Bhd also settled nine sen or 2.05% lower at RM4.30 after falling to an intraday low of RM4.22.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said energy stocks fell on Wednesday because of overall market weakness and profit taking.

“If crude oil prices can stay above US$80 (about RM334.68) for a longer time, we will still be buying in the midterm,” he told theedgemarkets.com.

Reuters reported that oil prices fell for the second straight day on Wednesday as doubts re-emerged over demand, with Covid-19 cases continuing to rise worldwide and gasoline shortages in some regions.

At the time of writing on Wednesday, Brent crude oil had declined by 1.72% to US$77.73 per barrel, while West Texas Intermediate crude was 1.77% lower at US$73.96 per barrel.

Lam Jian Wyn