Key Indices
Top Stories
Company Update | Velesto Energy (VEB MK/BUY/RM0.25/Target: RM0.29)
- JU rig outlook continues to be bullish despite geopolitical complications. On VEB, we opine that the negatives from the termination of Naga 3’s sale are fully priced in. Hence, we take the opportunity to upgrade to BUY (from HOLD) with minor adjustment to our target price to RM0.29. This is still based on 7x EV/EBITDA valuation, implies an attractive 10% normalised yield, and represents an alternative asset-value based EV per rig of US$94m.
Market Spotlight
- The FBMKLCI continued to slide lower by 1.40pt to close at 1,735.75 last Friday amid persistent selling pressure in index-linked counters.
- US stocks were higher after the close on Friday, as gains in the basic materials, consumer goods and technology sectors led shares higher.
Technical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Catcha Digital | CATCHA MK
- Trading Buy Range: RM0.245-0.25
Cypark Resources | CYP MK
- Trading Buy Range: RM0.69-0.695
Eastern & Oriental | EAST MK
- Trading Buy Range: RM0.77-0.775
Top Stories
Company Update | Velesto Energy (VEB MK/BUY/RM0.25/Target: RM0.29)
- JU rig outlook continues to be bullish despite geopolitical complications. On VEB, we opine that the negatives from the termination of Naga 3’s sale are fully priced in. Hence, we take the opportunity to upgrade to BUY (from HOLD) with minor adjustment to our target price to RM0.29. This is still based on 7x EV/EBITDA valuation, implies an attractive 10% normalised yield, and represents an alternative asset-value based EV per rig of US$94m.
Market Spotlight
- The FBMKLCI continued to slide lower by 1.40pt to close at 1,735.75 last Friday amid persistent selling pressure in index-linked counters.
- US stocks were higher after the close on Friday, as gains in the basic materials, consumer goods and technology sectors led shares higher.
Technical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Catcha Digital | CATCHA MK
- Trading Buy Range: RM0.245-0.25
Cypark Resources | CYP MK
- Trading Buy Range: RM0.69-0.695
Eastern & Oriental | EAST MK
- Trading Buy Range: RM0.77-0.775
Key Indices
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