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Stocks to watch: Abterra, GSS Energy, MMP Resources, oil and gas counters
THE following stocks may in the focus on Monday:
Commodities trader Abterra said it is solvent, able to meet its financial obligations and able to operate as a going concern after a review of its cash flow and balance sheet. The assessment of its financial status was carried out after its controlling shareholder and 34.96 per cent owner General Nice Resources (Hong Kong) was put under liquidation by the Hong Kong High Court.
In spite of the bloodbath in the oil exploration and offshore and marine sectors, precision engineering firm GSS Energy is moving ahead with its plans to produce oil in Indonesia - armed with an enormous cash hoard to buffer against the volatility in oil prices. The company, which in November was awarded a contract by Indonesian state-owned energy giant PT Pertamina, expects first oil to come by the first half of next year.
MMP Resources, which invests in construction-related firms, said on Monday the company has been served with a writ of summons, filed by Edward Lee Ewe Ming, claiming S$5.22 million. The company is disputing the claims. It separately said that Mr Lee has been granted leave by the court to withdraw the winding up application he filed against the company by Monday, with costs of the withdrawal to be borne by him.
Oil and gas (O&G) counters remain at best trading plays despite Opec's (Organization of the Petroleum Exporting Countries) agreement to cut production, lifting sentiment in the sector, a UOB Kay Hian research note said. UOB Kay Hian in its Dec 9 sector update cautioned against shipyards not being able to replenish their order books even after O&G capital expenditure recovers. The brokerage noted production orders are expected to take centre stage on an O&G capex rebound.