AffinHwang Capital downgrades Oil & Gas sector to Underweight

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KUALA LUMPUR (May 19): AffingHwang Capital Research has downgraded the oil & gas sector to "Underweight" and said that it  believes the current oil-price rally may soon fizzle as supply-demand fundamentals were still negative.

In a note today, the research house said some short-term kickers may have run their course while others may soon reverse.

“In view of a possible near-term correction in oil prices, unfavourable valuation and possible weak earnings, we downgrade heavyweights SapuraKencana Petroleum Bhd and Petronas Chemicals Group Holdings Bhd to Sell (from Hold), and the sector to Underweight.