AmResearch stays “neutral” on oil and gas sector

I would keep an eye on MISC.

Dateline 2016-01-12, The Star:

AmResearch has maintains its “neutral” call on the oil and gas (O&G) sector as prospects for a sustainable turnaround in crude oil prices still appear opaque at this stage.

“Given the current oil glut, which has adversely affected upstream players, we are positive on downstream and storage operators. As such, we prefer companies with stable and recurring earnings such as Dialog Group and Yinson.

“We also like O&G downstream players such as MISC, which benefits from the growth in petroleum shipping charters and new build slowdown,” AmResearch said.

Bloomberg reported that Petroliam Nasional Bhd’s (Petronas) CEO Datuk Wan Zulkiflee Wan Ariffin as saying that the group was bracing for two to three more tough years with crude at an 11-year low while seeking to keep its multi-billion dollar projects on track.


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