Malaysia Energy Stocks Soar as Middle East Turmoil Lifts Oil Prices

Malaysia's energy stocks rose to their highest level in three months on Tuesday as turmoil in the Middle East pushed oil prices higher.

The Bursa Malaysia Energy Index increased by over 1% following a strong earnings season for several companies last week, with Hengyuan Refining Company Bhd (KL:HENGYUAN) surging up to 30% after announcing its second-quarter net profit of RM600.54 million.

Analysts at Hong Leong Investment Bank warned that persistent disruption at the Strait of Hormuz could lift oil prices per barrel back towards US$90 in the near term, with a base case for an average of US$80 this year.

PETRONAS' capital expenditure is expected to rise next year alongside energy security investments across the region, and Hong Leong maintained its 'overweight' sector rating.