SINGAPORE (Dec 17): CIMB analyst Yeo Zhi Bin is keeping his ‘underweight’ call on the offshore and marine sector, as he expects recovery prospects come 2016 to be weighed down by inventory build-up and fundamental shifts towards the low-carbon economy.

The drop in oil prices over the past two years by more than half from the peak came at a pace and extent which the market players and analysts did not see. The subsequent hit on companies in this sector is all too apparent by now for all to see.

“Unless you are Gordon Gekko, it could be safe to say that almost none of the analysts have experienced such a drastic and severe downturn,” writes Yeo, in a Dec 16 retrospective note, referring to the fictional Wall Street shark whose rise and fall in the 1980s, and subsequent return in 2010, was played by Michael Douglas in the two Oliver Stone movies.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Related Stories

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook