From 1 year ago,
Keppel Corp has fallen from 11.1 to 7.95, which is a 28% decline.
Semb Corp has fallen from 5.48 to 3.77, which is a 31% decline.
At the same time, WTI has fallen from $102 to just $47.50 a barrel.
It seems that both KepCorp and SembCorp has been trading as equity proxies for crude oil itself.
If oil goes down further, will both of these counters drop even more?
If the stock market suddenly fall, will both of these counters drop even more?
Personally, I think that we are seeing the final gasps for an oil bottom. I’ve been watching the bounce and recovery for a while and I believe that we have all the 3 things needed for an oil bottom. Rig declines has decelerated, there is general fear in the oil market (smell of the headlines plus net …