KUALA LUMPUR: When it comes to oil and gas stocks, Kenanga Investment Bank Research is not in favour of a bargain-hunting strategy, especially for long-term investors.
“We believe investors should approach the sector with a ‘nimble trading’ approach, and adopt a ‘bottom-up’ strategy to identify any short-term thematic plays within the sector, should the opportunity arise, ” it said.
In its sector outlook, the research house said the recent share price rebounds in the sector could have been premature and that corrections could still occur before the underlying fundamentals catch up to valuations.
Kenanga has a “neutral” rating on the sector with no outright stock picks.
However, it said Petronas Chemicals and Hibiscus Petroleum are good trading proxies for oil prices.
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