O&G stocks top gainers list after oil prices extend gains

O&G stocks top gainers list after oil prices extend gains
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KUALA LUMPUR (Nov 23): Oil and gas (O&G) stocks were among the top gainers on Bursa Malaysia today after oil prices extended gains as traders eyed a recovery in crude oil demand. 

At the time of writing, Petronas Dagangan Bhd was up 2.75% or 54 sen at RM20.16, its highest price in the past month and giving a market capitalization of RM20.05 billion.

The counter was the second highest gainer behind Nestle (Malaysia) Bhd. 

Following Petronas Dagangan was Hengyuan Refining Company Bhd. Hengyuan, which saw some 2.34 million shares change hands, rose by 7.99% or 25 sen to RM3.38, valuing it at some RM1.01 billion. This is the highest the counter has reached since early July. 

Meanwhile, Petron Malaysia Refining & Marketing Bhd posted a gain of 5.54% or 21 sen to RM4, with a trading volume of 744,000 shares. Its market capitalisation stood at RM1.08 billion. 

Reuters reported this morning that oil prices extended gains as traders eyed a recovery in crude demand thanks to successful coronavirus vaccine trials, although prices were contained by renewed lockdowns in several countries.

It added that sentiment was also bolstered by hopes that the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, a group known as OPEC+, will keep crude output in check.

Brent crude futures rose 1.71% to US$45.69 a barrel at the time of writing, while the US West Texas Intermediate crude gained 1.41% to US$43.02 a barrel. Both benchmarks were reported to have jumped 5% last week.

S Kanagaraju