You know the duit raya you received? Maybe now is a good time to think of investing in O&G stocks.
Dateline 2015-07-06, Borneo Post:
Analysts expect the second quarter 2015 (2Q15) results for oil and gas (O&G) companies to continue to be weak, reflecting slower activities and vessel utilisations.
Kenanga Investment Bank Bhd’s research arm (Kenanga Research) in a report, said the full effect of rate cuts is expected to only be felt earliest in the second half of 2015 (2H15) and will mainly affect Petronas-dependent stocks as compromise for discounts on existing contracts could be finalised during that time period.
However, it pointed out, “We expect contract flows to be stronger in 2H15 compared to 1H15 as oil prices stabilises and oil majors finished recalibrating their capital expenditure (capex) plans to operate optimally under the current oil price scenario.”
The research team, nevertheless, believed the overall, earnings for the sector in general are expected to decline year-on-year.