Middle East Tensions Boost Malaysia Energy Stocks
Malaysia's energy stocks experienced their highest three-month peak on Tuesday due to increased tensions in the Middle East that have pushed oil prices higher.
The Bursa Malaysia Energy Index rose over 1% following a strong earnings season for several companies last week, with Hengyuan Refining Company Bhd (KL:HENGYUAN) surging as much as 30% to RM2.53 per share.
Persistent disruptions at the critical Strait of Hormuz could lift oil prices back towards US$90 in the near term, according to Hong Leong Investment Bank, which also noted that capital expenditure at PETRONAS for upstream will rise next year alongside energy security investments across the region.
The research house maintained its 'overweight' sector rating and kept Brent crude forecasts at an average of US$80 this year. However, TA Securities raised its Brent crude forecast to US$90 per barrel for 2026 under a more severe escalation scenario that disrupts regional oil production or flows through the Strait of Hormuz.