NOL

NOL: After a few weeks of relative stability, market participants are feeling jittery on oil again, as US crude stockpiles broke another high, fuelling the global glut. At the latest, WTI crude fell another 0.2% to US$48.06 a barrel, after yesterday’s decline.

In tandem, transportation stocks have risen on oil’s latest weakness. SIA (+1.81%), ComfortDelgro (+0.3%) and SMRT (+0.3%) were beneficiaries this morning.

This sentiment could also trickle to NOL, which had been punished 12.1% since 16 Feb. NOL’s sell down has been steep, and the current price is hovering slightly above the 200-daily moving average level.

Despite the current bearish sentiment on NOL, not all news are bad. In the first week of March, the counter received a TP upgrade from a foreign broker, after it adjusted estimates reflecting the sale of APL Logistics.

Separately, management has guided in its latest 4Q14 results that it could benefit from lower bunker prices in 2015, if oil prices remain depressed.

NOL is trading at 11.7x forward P/E.