Hot Stock Crude rebound pushes SapuraKencana past RM2 for first time in 1 mth

by **Cals** Fri 19 Feb 2016, 03:33

Hot Stock

[size=28]Crude rebound pushes SapuraKencana past RM2 for first time in 1 mth

By Kamarul Anwar / theedgemarkets.com | February 18, 2016 : 11:11 AM MYT

KUALA LUMPUR (Feb 18): SapuraKencana Petroleum Bhd climbed past the RM2-mark for the first time in one month, soaring as much as 13 sen or 6.84%, given that investors' approval for Iran's likelihood to join the oil production freeze pushed crude prices up today.

At 10.35am, SapuraKencana was traded nine sen or 4.74% higher at RM1.99. It had a trade volume of 8.81 million, making it the 14^th most actively traded stock on Bursa Malaysia.

The last time the integrated oil and gas (O&G) service provider hit the RM2-mark was on Jan 4, when it had an intraday high of RM2.04. However, the stock closed at RM1.94, losing eight sen from the previous trading day.

Investors have often turned to O&G stocks with upstream businesses whenever there is a rebound in crude oil prices. Apart from SapuraKencana, other service providers seeing a rebound in their stock values included Perisai Petroleum Teknologi Bhd (rose 3.64% to 28.5 sen at 10.35am), UMW Oil & Gas Corp Bhd (increased 3% to RM1.03 at 10.38am), Bumi Armada Bhd (climbed 2% to RM1.02 at 10.38am) and Malaysia Marine and Heavy Engineering Holdings Bhd (up 3% at RM1.03 at 10.36am).

Meanwhile, oilfield operator Sumatec Resources Bhd gained half a sen or 4.35% to 12 sen — being one of the top active stocks in the morning session with 13.45 million shares traded.

Reuters reported oil crude futures rose in early Asian trade on Thursday after Iran welcomed plans by Russia and Saudi Arabia to cap crude oil production at January levels, extending steep gains in the previous session.

Brent futures LCOc1 gained 32 US cents to US$34.82 a barrel by 0144 GMT, after surging 7.2% in the previous session to close up US$2.32.

US crude CLc1 rose 50 US cents to US$31.16 a barrel, having surged 5.6% in the previous session.

But commentators suggested markets may have overreacted to Iran's support for caps on crude production and it was unlikely moves to limit production would lead to cuts in oil output.
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