KUALA LUMPUR: Local energy stocks surged on Friday, driven by a sustained rally in oil prices amid escalating concerns over tensions in the Middle East.
The Bursa Malaysia Energy Index gained 3.29 per cent, or 28.20 points, to close at 886.01, an almost one-month high.
The benchmark FTSE Bursa Malaysia KLCI index on the other hand was down 0.56 per cent to 1,632.32 points.
The index is up 3.49 per cent from a year ago, while the FBM KCI is up 15.2 per cent.
The 23-stock energy sector index counts the likes of Dialog Group Bhd, Yinson Holdings Bhd and Bumi Armada Bhd as its biggest constituents.
Hengyuan Refining Company Bhd, Petron Malaysia Refining & Marketing Bhd and Hibiscus Petroleum Bhd were among the market's top gainers.
While Bumi Armada Bhd, Alam Maritim Resources Bhd, Dagang NeXchange Bhd, Perdana Petroleum Bhd and Velesto Energy Bhd were among the most active.
In a note today, CIMB Securities said oil prices kept rising amid the world's wait to see how Israel will respond to Iran's missile attack from Tuesday.
"A barrel of Brent crude, the international standard, leaped five per cent to settle at US$77.62 after starting the week below US$72. "It's potentially on track for its biggest weekly percentage gain in nearly two years," it noted.
President Joe Biden said on Thursday that US and Israeli officials were discussing a possible strike by Israel against Iranian oil facilities.
The speculation fuelled concerns about supply disruptions in the Middle East.
Brent crude, the global oil benchmark, jumped to US$78 a barrel, up from under US$70 just a month ago, as fears mounted that Israel might target Iran's oil production in response to recent attacks.
Iran currently produces more than 3 million barrels of crude per day, with Israel attacks on export facilities estimated to take out 10-50 per cent of its output and away
from global supplies.
Other market concerns include the possibility of Iranian response towards neighbouring energy infrastructure or supply routes, such as on the vital Strait of Hormuz.