O&M

O&M: Maybank-KE highlights that its measure of oil contango is at such extreme levels that typically, near term oil prices could rally.

If such a scenario eventuates, the house believes that the O&M sector could rally and that low quality names could perform relatively well in the short-term.

Overall, the house recommended strategy entails: 1) building positions in oversold, but high quality names at current depressed levels and 2) cutting exposure to those with uncertain outlook during the expected short-term bounce.

Overall, the house prefer asset-owners like Ezion (Buy: TP $1.35) with exposure to production and maintenance operations and remain negative on asset-builders such as Sembcorp Marine (Sell: TP $2.00), Nam Cheong (Sell: TP $0.17) and Vard (Sell: TP $0.35).