KUALA LUMPUR: AmInvestment Research is maintaining its neutral view of the oil and gas sector due to its mixed number of buy and sell calls.
It said on Wednesday Dialog Group
and Serba Dinamik Holdings are buy calls due to their resilient non-cyclical tank terminal and maintenance-based operations while Petronas Chemicals Group has a high correlation to the recent oil price upturn.
“However, as we continue to view the still low oil prices and earnings of upstream service companies to be worse than the previous 2015 to 2017 down cycle which led to multiple financial distress to O&G corporations, we retain our sell calls for Bumi Armada, Sapura Energy and Velesto Energy, ” it said.
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