KUALA LUMPUR (Feb 20): The Bursa Malaysia Energy Index rose 5.68% on Tuesday to reach its highest level since March 2021 at 946.95 points, led by gains in Dialog Group Bhd, Bumi Armada Bhd and Dayang Enterprise Holdings Bhd.

Oil and gas stocks were among top actives on improved sentiment after a strong showing in Dialog's earnings on Monday. Dialog, which has the highest weightage of 31.87% in the index, rose 34 sen, or 18.28%, to close at RM2.20 on Tuesday, valuing the group at RM12.42 billion. It was the third most gainer on Bursa Malaysia for the day and the third top active with 92.08 million shares transacted. Year to date, the counter has risen 6.8% or 14 sen.

On Monday, Dialog reported that its net profit rose 16.62% to RM148.29 million for the second quarter ended Dec 31, 2023 (2QFY2024) on higher revenue driven by better performances of both its Malaysian and international operations.

Quarterly revenue rose 7.8% to RM859.21 million from RM797 million in 2QFY2023. The results largely met analyst expectations.

Following the financial results announcement, 11 out 15 analysts covering the stock maintained their 'buy' calls, while three had 'hold', and one analyst a 'sell' rating. The median target price is RM2.74, according to Bloomberg, implying a potential 24.5% upside from the current share price.

Bumi Armada, the second biggest mover of the Energy Index on Tuesday, went up 3.5 sen, or 6.25%, to 60 sen per share, giving the group a market capitalisation of RM3.52 billion. Year to date, the counter has shot up 19% or nine sen.

In early January, Hong Leong Investment Bank (HLIB) said Bumi Armada is poised for sequential earnings growth in the coming quarters, amid better quarter-on-quarter contributions from the Armada Kraken floating production storage and offloading (FPSO) unit.

For 2024, HLIB expects maiden contributions from Armada Sterling V to serve as a booster for the group's earnings, projecting an 11.2% year-on-year increase in its bottom line.

Dayang Enterprise, which has secured at least five contract extensions so far this year, climbed 13 sen or 5.99% to RM2.30, as its market capitalisation stood at RM2.66 billion. Year to date, the counter has risen by 43.75% or 70 sen.

The upstream services group has yet to release its results for the three months ended Dec 2023. For its third quarter ended Sept 30, 2023 (3QFY2023), Dayang Enterprise posted its best quarterly net profit in about three years with a net profit of RM76.38 million compared with RM52.9 million in the same quarter the previous year.

Quarterly revenue rose 1.6% to RM343.76 million against RM338.34 million, underpinned by improved daily charter rates (DCR) of vessels and more work orders or contracts being awarded by oil majors received under topside maintenance contracts.

Other notable counters that contributed to the rise of the Bursa Malaysia Energy Index include Carimin Petroleum Bhd, which jumped 8.7%, Wasco Bhd (+8.55%), Uzma Bhd (+7.83%), Perdana Petroleum Bhd (+7.55%) and Petra Energy Bhd (+7.54%).

Year to date, the index has risen 15.8%. With 22 constituents, the market capitalisation of the index stood at RM37.97 billion.