SAPURAKENCANA PETROLEUM BHD Stock Code: 5218
SKPETRO (Not Rated). SKPETRO had caught our attention after the share price confirmed a technical rebound by breaking out from its downtrend resistance level to close 18 sen (+9.94%%) higher at RM1.99. The share price has been consolidating for the past few months due to the lacklustre Crude oil prices. On the chart, SKPETRO has settled above its 20-day SMA level on the back of strong trading volume yesterday. MACD has started to initiate a bullish technical crossover, while RSI has trended up strongly to imply strengthening buying momentum. We reckon that the recent strong share price rally could be due to the year-end window dressing activity, as investors look to accumulate weakness. Thus, we view that follow through buying interest could potentially rally the share price further towards RM2.10 (R1) and retest its previous high level of RM2.29 (R2) in the near-term. Nevertheless, we do not discount a possibility of immediate consolidation before the next run up due to the overdone rally recently and uninspiring crude oil price performance.
Source: Kenanga Research – 29/12/15
SAPURAKENCANA PETROLEUM BERHADThe Company is an oil and gas services and solutions provider. The Group's principal business include providing end-to-end solutions and services to the upstream petroleum industry and covers activities such as installation of offshore pipelines and structures fabrication of offshore structures accommodation and support vessels drilling vessels hook-up and commissioning topside maintenance services underwater services offshore geotechnical and geophysical services project management diving services offshore support services infrastructure and specialised steel fabrication works.