KUALA LUMPUR (April 29): SapuraKencana Petroleum Bhd's share prices rebounded in active trade this morning after being sold down yesterday due to the disposal of an 8.2% stake or 490 million shares by substantial shareholder Seadrill Ltd for approximately US$195 million (RM763 million) or RM1.58 per share.
As at 11:24am, SapuraKencana was trading at RM1.67, up three sen or 1.83%. It was the most actively traded counter, with 46.42 million shares done.
Seadrill made the exit announcement on Wednesday, which prompted the heavy selling in SapuraKencana's shares yesterday.
Yesterday, SapuraKencana fell to as low as RM1.62, before closing at RM1.64.
In an evening edition note to investors last night, AllianceDBS Research said SapuraKencana's share price had "gapped down" yesterday.
"The downside gap indicated the urgency to unload stock position. Following the down close on April 28, the stock is likely to move lower again with immediate support seen at RM1.60 in the coming few days. A fall below RM1.60 should see further decline to the subsequent support zone, RM1.50–RM1.56," the firm said.
"The hurdle is pegged at RM1.69. A rise above RM1.69 would lift the stock to the next resistance at RM1.80," it added.
Meanwhile, in its research note to clients today, Kenanga Research opined that Seadrill's exit was a "slight negative" to SapuraKencana at this juncture as Seadrill "has always been deemed to be a strategic partner".
"We believe margin erosion is a concern in all three segments (engineering and construction, drilling, and Brazilian operations) in the near term even with oil prices recovering to US$50 per barrel as most oil majors are still in aggressive cost optimisation mode," the firm said.
SKPETRO (5218) - Hot Stock: SapuraKencana rebounds, beats pessimism on share price
http://www.theedgemarkets.com/my/article/sapurakencana-rebounds-beats-pessimism-share-price
