Brent crude surged 3.4% to USD106 per barrel after the US Senate voted down an Iran war resolution, heightening Middle East tensions. According to Malacca Securities Research, that spike is steering money into Bursa energy stocks while the broader market weakens.
The research house expects the FBM KLCI to stay cautious amid elevated bond yields and oil prices. It singled out HIBISCS, DAYANG and DELEUM as the local names to watch.
Bursa Energy Stocks Outperform on a Red Day
The local bourse closed lower, weighed down by heavyweights Press Metal (PMETAL) and YTL Corporation. Market breadth was firmly negative, with 677 losers against 436 gainers.
Against that backdrop, the Energy index rose 1.17%, led by Dialog Group (+2.0 sen) and Solarvest (+11.0 sen). Telecommunications was the weakest sector, sliding 1.97%.
On Wall Street, the Dow fell 0.3%, while the S&P 500 and Nasdaq finished flat at 7,704.1 and 26,939.4. The US 10-year Treasury yield climbed to 5.2%, keeping rate-hike fears alive.
What the Three Companies Do
Hibiscus Petroleum is an upstream oil and gas producer, meaning its revenue moves directly with crude prices. The research house described it as offering direct oil-price exposure.
Dayang Enterprise provides offshore maintenance, construction and modification (MCM) services to oil and gas operators. Deleum supplies oilfield services covering production optimisation, maintenance and asset enhancement.
The Key Numbers Behind the Call
For HIBISCS, Malacca Securities pointed to July production of roughly 32,000 barrels of oil equivalent per day (boe/d). The company has guided FY2027 sales of 10.7 to 11.2 million boe.
DAYANG is supported by an order book above RM4.0 billion, the research house noted. A RM1.0 billion Saudi MCM tender offers further upside if secured.
DELEUM carries an order book of RM2.4 billion, which Malacca Securities said gives it earnings visibility. Its ongoing maintenance and asset-enhancement work underpins that pipeline.
Valuation Basis: A Trading View, Not a Rated Call
This is a daily market strategy note, not a full company initiation. Malacca Securities did not attach ratings, target prices or earnings forecasts to HIBISCS, DAYANG or DELEUM in this report.
The thesis rests on two pillars: leverage to Brent above USD100 for producers, and contract backlogs for service providers. Readers seeking valuation metrics would need to consult separate company-specific research.
For US markets, the research house flagged ExxonMobil (XOM) and ConocoPhillips (COP) as oil-price plays. COP plans to return 45% of operating cash flow to shareholders in 2026.
Lockheed Martin (LMT) was also mentioned after winning a USD1.2 billion US Army Precision Strike Missile contract. That lifts its backlog to a record USD230.4 billion.
The Risks
The rally is driven by geopolitics, which can reverse quickly if Middle East tensions ease. A drop in Brent back below USD100 would hit producers like HIBISCS first.
US yields at around 5.1% to 5.2% also pressure equity valuations broadly. Malacca Securities expects Wall Street to stay volatile, and that tends to spill over into Bursa.
For DAYANG, the RM1.0 billion Saudi tender is potential upside only, not a confirmed win. Order books also convert to earnings over time, so quarterly results can lag headline figures.
What This Means for Retail Investors
The note captures a classic sector rotation: money leaving telcos and heavyweights for oil-linked names. Trading-driven interest of this kind can be short-lived and sensitive to daily oil headlines.
Producers and service providers respond differently to oil prices. HIBISCS earnings move more directly with crude, while DAYANG and DELEUM depend on contract flow and execution.
Because no target prices were set, investors weighing these counters may want to review the companies’ latest quarterly results and full research coverage. The full report is available from M+ Online.
Key Takeaways
- Brent crude rose 3.4% to USD106 after the US Senate rejected an Iran war resolution.
- Bursa Energy index gained 1.17% while 677 losers outpaced 436 gainers.
- Malacca Securities flagged HIBISCS, citing July output of about 32,000 boe/d and FY2027 sales guidance of 10.7 to 11.2 million boe.
- DAYANG has an order book above RM4.0 billion; DELEUM holds RM2.4 billion.
- The daily note carries no formal ratings or target prices for the three counters.
This article summarises research by Malacca Securities (M+ Online) and does not constitute investment advice.
Source & Attribution
This article summarises a research report published by Malacca Securities Sdn Bhd (M+ Online) on 25 September 2026. All ratings, target prices and forecasts belong to Malacca Securities Research, not to the author of this blog.
Read the original report: M+ Online Research Report | View full PDF
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Ratings and target prices cited are those of Malacca Securities Research and are subject to change. Always do your own research before making investment decisions.
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