Oil & Gas : BIMB Securities downgrades oil and gas sector to Neutral
KUALA LUMPUR (Dec 9): BIMB Securities Research has downgraded the oil and gas sector to “Neutral” after national oil firm Petroliam Nasional Bhd (Petronas) announced that its capital expenditure (CAPEX) will be cut by 15% - 20% in 2015.
In a report Tuesday, the research house said this news hammered the stocks across the board hard with a huge outflow of foreign investors selling down last Monday.
Meanwhile, BIMB Securities said the OPEC decision to maintain their production level at 30 million barrels per day had dragged Brent crude price down by 6.7% to close at USD72.58/bbl.
“We are seeing a price war between OPEC and US. Locally, the latest quarter results were largely in line with our expectation as 5 under our coverage were in line with 2 below and 1 above our earnings forecast.
“Following our earnings revision in view of a less sanguine outlook, we are downgrading the sector to Neutral,” it said.
However, the research house said due to the sell-down over the past months, there were more buy calls despite its lower estimate and valuation parameter.
“We have a Buy call on Dialog Group Bhd (TP: RM1.67), Dayang Enterprise Holdings Bhd (TP: RM3.14), Uzma Bhd (RM2.81) and Barakah Petroleum Bhd (TP: RM1.30).
“Downgrade UMW Oil and Gas Corporation Bhd (TP: RM2.68) and Scomi Energy Bhd (TP: RM0.57) to Neutral,
“Sell call on Malaysian Marine and Heavy Engineering Holding Bhd (TP: RM1.32) and Wah Seong Corporation Bhd (TP: RM1.38),” it said.
http://www.theedgemarkets.com
KUALA LUMPUR (Dec 9): BIMB Securities Research has downgraded the oil and gas sector to “Neutral” after national oil firm Petroliam Nasional Bhd (Petronas) announced that its capital expenditure (CAPEX) will be cut by 15% - 20% in 2015.
In a report Tuesday, the research house said this news hammered the stocks across the board hard with a huge outflow of foreign investors selling down last Monday.
Meanwhile, BIMB Securities said the OPEC decision to maintain their production level at 30 million barrels per day had dragged Brent crude price down by 6.7% to close at USD72.58/bbl.
“We are seeing a price war between OPEC and US. Locally, the latest quarter results were largely in line with our expectation as 5 under our coverage were in line with 2 below and 1 above our earnings forecast.
“Following our earnings revision in view of a less sanguine outlook, we are downgrading the sector to Neutral,” it said.
However, the research house said due to the sell-down over the past months, there were more buy calls despite its lower estimate and valuation parameter.
“We have a Buy call on Dialog Group Bhd (TP: RM1.67), Dayang Enterprise Holdings Bhd (TP: RM3.14), Uzma Bhd (RM2.81) and Barakah Petroleum Bhd (TP: RM1.30).
“Downgrade UMW Oil and Gas Corporation Bhd (TP: RM2.68) and Scomi Energy Bhd (TP: RM0.57) to Neutral,
“Sell call on Malaysian Marine and Heavy Engineering Holding Bhd (TP: RM1.32) and Wah Seong Corporation Bhd (TP: RM1.38),” it said.
http://www.theedgemarkets.com
