Hot Stocks O&G counters dominate the market as outlook seen bright

by **Cals** Mon 17 Feb 2014, 18:51

Hot Stocks O&G counters dominate the market as outlook seen bright

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Monday, 17 February 2014 15:48

KUALA LUMPUR (Feb 17): Oil & gas (O&G) counters dominated the stock market today after various reports have painted a ‘bright’ outlook for the O&G industry.

According to Remisier’s Association of Malaysia’s president Sam Ng: “Investors believe the prospects going forward for the O&G industry is bullish, thus active movement is seen in O&G counters today.”

“This could be due to various O&G news reports released by The Edge and other news firms. It could also be due to the firmer ringgit against the US dollar today.”

At 3.30 pm today, KNM Group Bhd, Sona Petroleum Bhd and Sumatec Resources Bhd were among the top actives. Their warrants, KNM-WA, Sona-WA and Sumatec-WB, were also among the top actives.

Other top actives include Daya Materials Bhd, Scomi Energy Services Bhd and Scomi Group Bhd.

In addtion, Scomi stocks rose after several news reports highlighted market talk that tycoon Tan Sri Quek Leng Chan may have made his entry into the firm. Scomi Energy was also a top gainer.

Among the top gainers were Deleum Bhd, Coastal Contracts Bhd and Uzma Bhd. Coastal’s warrant, Coastal-WA, was also a top gainer.

Last week, The Edge Weekly reported O&G heavyweights and mid caps as having outperformed the FBM KLCI’s 52-week return of 11.38% by at least five times, thanks to Petroliam Nasional Bhd’s (Petronas) commitment to use up its RM300 billion of capital expenditure from 2011 to 2015.

Most analysts rate O&G stocks as ‘overweight’ due to the latter's strong order books and clear earnings visibility, despite their premium valuations.