Related Articles
KUALA LUMPUR: Reservoir Link Energy Bhd plunged nearly 26 per cent in early trade, wiping out all of yesterday’s sharp gains, as oil prices retreated following news of a ceasefire between Israel and Iran.
The stock opened flat at 43 sen before tumbling to as low as 32 sen, down 25.58 per cent or 11 sen, slipping below its start-of-year price of 33.5 sen.
By 11.05am, it pared some losses to trade at 34.5 sen, still down 19.77 per cent, with 24.43 million shares changing hands. It was the second most actively traded stock.
Yesterday, Reservoir Link surged 16.2 per cent, or six sen, to close at 43 sen, riding on a rally in global oil prices that pushed crude to its highest levels in more than a month.
It was the company’s busiest trading day since Dec 4, 2024, with volume soaring to 57.81 million shares.
However, sentiment shifted overnight after United States President Donald Trump announced a “complete and total” ceasefire between Israel and Iran, easing fears of regional supply disruptions.
Brent crude dropped 3.8 per cent to US$68.79 per barrel, while West Texas Intermediate slid 3.9 per cent to US$65.46, both hitting their lowest levels in more than a week.
Other oil and gas counters also retreated. Hibiscus Petroleum Bhd, the biggest beneficiary of Monday’s rally, fell 8.74 per cent or 16 sen to RM1.67.
Bumi Armada Bhd slipped 4.17 per cent to 46 sen, while Velesto Energy Bhd was unchanged at 18.5 sen after an earlier dip of 5.41 per cent. All four counters dominated the exchange’s most active list.
The sell-off dragged the Bursa Malaysia Energy Index down 2.28 per cent, or nearly 17 points, to 728.96, the steepest decline among all sectoral indices.
Across the broader market, the benchmark FTSE Bursa Malaysia KLCI edged down 0.09 per cent, or 1.30 points, to 1,515.31 by mid-morning.
© New Straits Times Press (M) Bhd
