Malaysian energy shares reach two-week low after crude slump
Dialog fell 2% and Hengyuan lost 5% as reports of possible US-Iran peace talks weighed on oil prices.
Malaysia’s energy shares fell to their lowest level in two weeks on Nov 3, following a slide in crude prices amid reports of a possible peace agreement between the US and Iran. The Bursa Malaysia Energy Index lost over 1%.
At the midday break, Dialog Group Bhd, an oil and gas services company, traded at RM2.09, down 2%. Hengyuan Refining Company Bhd fell 5% to RM3.64. The sector index covers 34 stocks.
Global crude benchmark Brent had dropped nearly 8%, reaching US$104.75 per barrel after reports of talks aimed at ending the months-long Iran war. Within hours, however, the Associated Press reported US strikes on Iranian targets in the Strait of Hormuz, describing the action as limited and defensive.
BIMB Securities analyst Azim Faris Ab Rahman said the market remained uncertain about whether a full ceasefire or further fighting would follow. He said an outcome between peace and war could keep energy prices elevated.
