TA only gives you a warning sign. Not necessarily will drop. Stop loss takes your money to a safe zone. If tonight you see S&P500 drops triple digits, then majority of counters will drop regardless if you see a bullish engulfing or hammer etc.
KUALA LUMPUR: Fund managers from around the region are upbeat on Malaysia’s oil and gas (O&G) sector, fuelled by Petronas’ record five-year capital expenditure of RM300bil as well as the political status quo following the recently concluded general elections, CIMB Research said.
Maintaining its Overweight call on the sector, it said the O&G stocks in its portfolio have outperformed the FBM KLCI by 28%, gaining an impressive 34% year-to-date on average.
It advised investors should stay invested and keep their eyes peeled for new developments in the sector.
According to CIMB Research, three salient points emerged from the series of meetings it held with 37 fund managers from KL, Singapore and Hong Kong.
They were 1) interest in small field development as it seen to allow service providers to go beyond their normal scope of work; 2) rising interest in downstream companies following PetDag's exciting share price run and massive downstream initiatives in Pengerang; and 3) offshore support vessel (OSV) companies are riding a renewed wave of interest on better vessel charter and utilisation rates.
It pointed out that OSV providers Alam and Perdana, have outpaced the benchmark index by an impressive 96% and 72% respectively, owing to improving vessel charter and utilisation rates.
“The area that stirred the most interest was marginal field development, following the award of three risk service contracts (RSC) to SapuraKencana, Dialog Group and Petra and their respective foreign partners, namely UK's Petrofac, Australia's Roc Oil and Thailand's Coastal Energy.
“Most fund managers agreed with us that marginal field development could be a game changer as it allows local service providers to move up the value chain and become developers and producers,” CIMB said.
It added that Petronas would soon be offering 10 marginal fields under its third licensing round for Risk Sharing Contracts (RSC), with many companies expected to vie for them, including international players. The upside in this swell-looking scene for local players, not withstanding the competition from abroad, is that foreign companies are required to partner Malaysian oilfield service companies to qualify for the RSCs.
Apart from SapuraKencana and Dialog, other local companies expected to join the fray in the RSCs include Bumi Armada, TH Heavy Engineering (formerly Ramunia), Sc Group, Daya Materials, and Hibiscus Petroleum, it added.
Meanwhile things are looking up for downstream players too. The government’s Economic Transformation Programme has provided a substantial boost to Malaysia’s oil, gas and energy sector, which grabbed 44% of the RM212bil investments committed so far. Notable players in this segment are Dialog and PetDag, it said.
The former, having secured the Pengerang and Balai projects, is also eyeing opportunities in construction and maintenance works at RAPID, a RM60bn refinery and petrochemical integrated development, also in Pengerang, Johor.
“We remain Overweight on the sector with our top picks in SapuraKencana among the big caps and Perisai among the small ones. Our stock ratings, earnings forecasts and target prices are intact,” CIMB said.
yaaaahooooo, duit raya sudah secured, my bait at 0.90 sudah kena makan. Now we look see whether this counter is strong enough to break the 1.00 barrier
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
marcusngmunkit
145 posts
Posted by marcusngmunkit > 2013-07-15 20:11 | Report Abuse
type of candlestick.. looks like a cross.." + "