KUALA LUMPUR (Dec 12): Stocks in the oil and gas industry advanced on Monday after RHB Research upgraded the sector to Overweight, given its positive long-term view of the industry.
At 9.35am, Petronas Gas rose 26 sen to RM14.10, MMHE eight sen to RM5.53, Petronas Chemicals seven sen to RM6.07, Kencana three sen to RM2.79, Wah Seong Corp one sen to RM1.93 and KNM half a sen to 99 sen.
RHB Research in a note Dec 12 said that the excess liquidity flows had resulted in crude oil prices holding up (vs. plunge in the 2008 global financial crisis).
This was despite the persistent global economic uncertainties, it said.
“We revise our average crude oil price assumptions to US$95/bbl for FY12 and US$99.8/bbl for FY13 (from US$80/bbl and US$89/bbl previously) and upgrade our benchmark sector PER to 15x (from 13x).
“We upgrade our call on the sector to Overweight, as we take into account the positive long-term view.
RHB Research said its top picks were Petronas Gas and Dialog, given their long-term fundamentals.
The research house said it was also positive on the the merger of SapuraCrest and Kencana as it would emerge as a formidable non-Petronas oil & gas company.
At 9.35am, Petronas Gas rose 26 sen to RM14.10, MMHE eight sen to RM5.53, Petronas Chemicals seven sen to RM6.07, Kencana three sen to RM2.79, Wah Seong Corp one sen to RM1.93 and KNM half a sen to 99 sen.
RHB Research in a note Dec 12 said that the excess liquidity flows had resulted in crude oil prices holding up (vs. plunge in the 2008 global financial crisis).
This was despite the persistent global economic uncertainties, it said.
“We revise our average crude oil price assumptions to US$95/bbl for FY12 and US$99.8/bbl for FY13 (from US$80/bbl and US$89/bbl previously) and upgrade our benchmark sector PER to 15x (from 13x).
“We upgrade our call on the sector to Overweight, as we take into account the positive long-term view.
RHB Research said its top picks were Petronas Gas and Dialog, given their long-term fundamentals.
The research house said it was also positive on the the merger of SapuraCrest and Kencana as it would emerge as a formidable non-Petronas oil & gas company.
