By REUTERS
Malaysia’s benchmark index is heading for its worst drop in almost 23 months on Monday, as Petroliam Nasional’s (Petronas) plan to cut capital expenditure (capex) hit oil and gas shares, while falling oil prices triggered selloffs in energy stocks across the region.
Oil fell more than US$2 (RM6.79) a barrel to a five-year low in Asian trade on Monday, extending a steep selloff after Organisation of the Petroleum Exporting Countries (Opec) decided not to cut production last week, keeping markets well supplied.
Kuala Lumpur’s composite index (KLCI) was down 2.3%, on course for its biggest single-day fall since Jan 21, 2013, having hit 1,778.24 during the session, its lowest since Oct 17.
Petronas said late on Friday that it will cut capex for next year by 15% to 20% due to falling oil prices, a move analysts said would hurt earnings of Malaysian oil and gas services firms relying on Petronas jobs.
Among top losers, shares of Sapurakencana Petroleum plunged 13.9% and shares of UMW Oil and Gas Corporation slipped 15.2%.
— by Viparat Jantraprap & Yantoultra Ngui
You must be logged in to post a comment.