KUALA LUMPUR: Oil and gas (O&G) stocks were the most active stocks on Bursa Malaysia in early trade Monday as oil prices rose after progress on the U.S. stimulus bill.
Reuters reported Brent crude futures for May rose US$1.07, or 1.7%, to US$65.49 per barrel by 0042 GMT. The April contract expired on Friday.
U.S. West Texas Intermediate (WTI) crude futures jumped US$1.10, or 1.8%, to US$62.60 a barrel.
Axi chief global markets strategist Stephen Innes said oil prices are recovering this morning in line with most risk assets on the back of the US stimulus bill passing the House and as central banks continue to sabre rattle to ward off market-implied financial tightening.
“The oil market has been hobbled partly by the domino effect of ‘risk-off’ sentiment across broader markets. And by supply concerns ahead of next week’s OPEC+ meeting as reports surface, Russia is pushing for a production increase. At the same time, Saudi Arabia favours holding production steady,” he said.
On Bursa today, Bumi Armada rose 2.5 sen to 41.5 sen while Velesto added one sen to 17.5 sen.
Both stocks were among the most actively traded counters on Bursa with 80.7 million shares and 58 million shares traded respectively.
DNeX gained two sen to 74 sen, Sapura Energy added 0.5 sen to 15 sen, KNM unchanged at 20 sen.