O&M stocks recover as oil rebounds

Singapore

OFFSHORE and marine (O&M) stocks on the Singapore Exchange may have taken a beating of late because of falling oil prices, but analysts believe it is a good time to snap up some of these counters. The performance of this sector on Tuesday suggests bargain-hunters may have already taken heed of this advice, as many of the stocks rebounded after a lashing the day before.

The FTSE ST Oil and Gas Index rose 0.5 per cent on Tuesday, breaking a four-day losing streak, as crude oil rebounded from the five-year low it hit on Monday. Brent crude had fallen 2 per cent intraday to US$67.50 per barrel on Monday, pushing Singapore-listed oil and gas stocks to lose between 5 per cent and 16 per cent.