News, Trading

Potential trading opportunities in oil and gas

KUALA LUMPUR: Kenanga Research believes there is trading potential in oil and gas plays with palatable balance sheets and are trading at steeply discounted valuations.

“While underlying fundamentals still remain weak, we see potential trading opportunities (in contrast to fundamentally-based investment strategies) to fully capitalise on the current vaccine-driven boost in sentiment, looking to take-profit in the next 2-3 months’ window once gains are sizable,” it said in a report, while maintaining its “neutral” recommendation on the sector.

The research house’s top trading pick is Uzma although it also sees trading potential in Dayang and MHB.