Stock Name: WASEONG
Company Name: WAH SEONG CORPORATION BHD
Research House: RHB

KUALA LUMPUR: RHB Research is maintaining its fair value of RM2.21 for Wah Seong Corp Bhd and is keeping its market perform recommendation.

The research house said on Tuesday, Nov 2 that it believes much of the negative sentiment surrounding the sector has been priced in by investors. Share prices did not experience any significant pull-back during the quarterly results reporting in Aug and in fact some stocks have performed strongly in recent months.

'Two main reasons for this: 1) Sustained crude oil prices above the US$70 per barrel mark; and the 2) Resolution of several global energy issues,' it said.

AmResearch said in the short-term, it believes several stocks to see ample trading interest on the back of positive newsflows.

They are stocks linked to the initiatives planned in the Economic Transformation plan (Dialog); provide brownfield services to the domestic energy market (Dayang/ Kencana); and; Are in the same value chain as the two Petronas listings (Kencana/Petronas Gas) could see ample trading interest on the back of positive newsflows.