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Hot stock: Oil-related shares jump on Opec deal
OIL-RELATED counters were in play on Monday, as oil prices gained on hopes that output reductions by oil producing nations would ease the supply glut that has plagued the sector.
Shares of Keppel Corp gained 24 cents to S$6.17, while Sembcorp Marine added 5.5 cents to S$1.505, as at 9.48am.
Among second-liners, Ezra Holdings put on 0.2 cents to S$0.046.
Meanwhile, KrisEnergy gained one cent to S$0.21, buoyed in part by the approval of a bond restructuring plan on Friday.
This meant the company would be able to access the remaining US$35 million bridge facility on its revolving credit facility. KrisEnergy will also be able to tap S$140 million from the preferential offering of zero coupon secured notes due 2024, which come with up to 1.25 billion warrants.
These counters were ranked among the most actively traded stocks on the Singapore Exchange.
The active play comes as the Organization of the Petroleum Exporting Countries (Opec) and non-member producers agreed over the weekend to reduce oil output. Notably, producers from outside Opec agreed to reduce output by 558,000 barrels a day - the largest-ever contribution by non-Opec countries. Saudi Arabia also surprised the market by agreeing to cut more output than previously agreed, Bloomberg reported.
The agreement is the first between Opec and non-Opec producers since 2001. In response, oil prices shot to their highest level since 2015 early on Monday.