KUALA LUMPUR (June 14): Shares of KNM Group Bhd, which is involved in oil and gas (O&G) equipment and services, rose in active trade on Monday, as Brent crude oil prices hovered above US$73/bbl.

The stock opened higher and was the second most active counter behind Serba Dinamik Holdings Bhd, with 85.94 million shares traded in the morning session.

KNM settled up one sen or 5.56% to 19 sen at noon market break, having touched 20 sen earlier. Year to date, the counter is still down 7.32%.

Also actively traded was Sapura Energy Bhd, which swung between losses and gains with 52.7 million shares traded. The counter closed unchanged at 13.5 sen at noon market break.

Brent crude oil price is hovering at its two-year high, on the back of improved economic activities in key markets and as OPEC+ agreed to restrain supply through July.

Also supporting sentiment is declining inventories data released in the US this week, and after the International Energy Agency (IEA) suggested that OPEC+ will need to increase production to ensure adequate global supply.

While oil prices have gained by over 12% from their May low of US$65/bbl and were up 10% year to date, Malaysian O&G equities have not caught up, as sentiment is hindered by elevated Covid-19 cases, followed by another Movement Control Order (MCO 3.0) that is now extended to June 28.

The Bursa Malaysia Energy Index stood at 838.46 points at the time of writing, down 21% from its recent March peak, and down 6.4% from the start of the year.

Across the sector, other gainers today include petrochemicals outfit Lotte Chemical Titan Holding Bhd (up five sen or 1.62% to RM3.14), O&G services group Dayang Enterprise Holdings Bhd (up four sen or 2.94% to RM1.40), and Carimin Petroleum Bhd (up 2.5 sen or 3.68% to 70.5 sen).