Nam Cheong has been consolidating below the 0.300 for the whole year of 2013, only to break above it today on high volume and nearing 2014. As long as it stays above 0.300 now, it can be a new uptrend to a target of 0.32 to 0.35 in the short term. Note that it has been trading above the 200 DAY MA consistently since last year which signifies that the longer term trend is still pointing upwards. Upward sloping channel support line still intact as seen and support well. Possible to hold to ride the next phase upward. TOP 10 VOLUME seen currently on this breakout which shows interest and upward momentum finally.
Maybank KE – 11 December 2013
#SG O&M: Maybank-KE maintains its Overweight outlook on the Offshore & Marine sector for 2014, with the house expecting offshore oil and gas activities to gain momentum as the industry gravitates towards the development phase.
Led by national oil companies with national agendas for energy security, spending is more secular than cyclical, and as spending percolates through the value chain, offshore construction, installation and subsea activities will pick up and in turn benefit the offshore shipyards and oilfield services players.
The house opines that the rig building industry is in the midst of a multiyear up-cycle, with strong demand for shallow-water jackups already evident, and US drillers such as Transocean have started to upgrade their fleet.
According to Wood Mackenzie, at least 95 additional deep-water floaters are needed from 2016 to 2022 to exploit discoveries in deep-water. As such, the house project a return in deep-water floater orders (particularly semi-subs) from 2014 as (1) utilisation rates have breached 90%, (2) day rates are rising, and (3) only four semi-subs are to be delivered beyond 2016
The robust rig building activities underline the house view that the OSV market is poised for a cyclical rebound, as more rigs entering the water would fuel demand for support services.
Overall, the house top Buys in the sector are Sembcorp Marine, Nam Cheong, Ezion and Vard. Top Sells include CoscoCorp and Yangzijiang.
Led by national oil companies with national agendas for energy security, spending is more secular than cyclical, and as spending percolates through the value chain, offshore construction, installation and subsea activities will pick up and in turn benefit the offshore shipyards and oilfield services players.
The house opines that the rig building industry is in the midst of a multiyear up-cycle, with strong demand for shallow-water jackups already evident, and US drillers such as Transocean have started to upgrade their fleet.
According to Wood Mackenzie, at least 95 additional deep-water floaters are needed from 2016 to 2022 to exploit discoveries in deep-water. As such, the house project a return in deep-water floater orders (particularly semi-subs) from 2014 as (1) utilisation rates have breached 90%, (2) day rates are rising, and (3) only four semi-subs are to be delivered beyond 2016
The robust rig building activities underline the house view that the OSV market is poised for a cyclical rebound, as more rigs entering the water would fuel demand for support services.
Overall, the house top Buys in the sector are Sembcorp Marine, Nam Cheong, Ezion and Vard. Top Sells include CoscoCorp and Yangzijiang.
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