Hot Stock Perisai shares rebound as crude oil trades higher

by **Cals** Sat 30 Jan 2016, 02:27

Hot Stock

[size=28]Perisai shares rebound as crude oil trades higher

By Kamarul Anwar / theedgemarkets.com | January 29, 2016 : 4:00 PM MYT

KUALA LUMPUR (Jan 29): Shares in Perisai Petroleum Teknologi Bhd ([You must be registered and logged in to see this image.] Valuation: 1.70, Fundamental: 0.65) rebounded today, rising as much as 2.5 sen or 9.43% to hit an intraday high of 29 sen in early trade today after the oil and gas (O&G) exploration support provider hit an all-time low of 23 sen on Jan 21.

This follows reports quoting some fund managers as saying that they see value in battered O&G counters with crude oil prices rising this week on speculation that major oil-producing nations were looking to cut production counts. This opened the window for investors to push up companies with earnings dependent on oil price movements.

As at 2:53 pm, KNM Group Bhd ([You must be registered and logged in to see this image.] Valuation: 1.10, Fundamental: 0.85), SapuraKencana Petroleum ( Valuation: 1.40, Fundamental: 0.65) Bhd and its call warrant SKPETROC19, Sumatec Resources Bhd ( Valuation: 1.50, Fundamental: 1.70), and Hibiscus Petroleum ( Valuation: 0.90, Fundamental: 0.75) Bhd joined Perisai to be among the 20 most actively traded counters on Bursa Malaysia.

Before KNM took the lead as at the time of writing, Perisai had the biggest trading volume among those O&G stocks. It was traded two sen or 7.55% higher at 28.5 sen, with 22 million shares changing hands.

Although Perisai has sunk to its lowest point and lost 45% in a year, TA Securities is of the view that the stock still has a downside – judging from its target price of 24 sen and “sell” call on Perisai.

TA Securities’ target price is equivalent to 30% of Perisai’s estimated price-to-book value by the end of its financial year ending Dec 31, 2016.

Nonetheless, the research outfit said in a note yesterday that the “potential re-rating catalysts” for Perisai’s stock Are the stabilisation of oil prices and new fleet contracts.

Global benchmark Brent crude futures rose today, moving nearly 6.5% higher so far this week and set for a second weekly gain, spurred by hopes of a deal among oil-producing countries to tackle a growing supply glut.

Brent futures have jumped over 25% since hitting an intraday low of US$27.10 a barrel on Jan 20 and up to its Jan 28 high of US$35.84.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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