Ezra news puts O&M sector, banks in spotlight

NEWS over the weekend that offshore and marine (O&M) company Ezra Holdings has filed for US Chapter 11 bankruptcy protection in order to restructure its debts will undoubtedly be the main feature of trading in the early part of this week.

Although the news is not wholly unexpected and could already be discounted, there could be knee-jerk pressure on the O&M sector and spillover selling of the banks.

Otherwise, externally investors will likely look to Wall Street for direction and as far as hyped-up market-moving events go, it will be tough to top the adrenalin rush of last week when the US Federal Reserve, as universally expected, raised interest rates for the third time since the 2008 crisis while less expectedly so, signalled a more dovish stance on its rate path.