Nikkei Asian Review: MARKET BUZZ: Malaysia’s MISC Jumps 6.3% On Strong 3Q Earnings; CIMB Upgrades To Hold

6 November 2017: ” KUALA LUMPUR (Nov 06) — MISC up 6.3% to MYR7.56 after a five-fold jump in 3Q net profit. CIMB Investment Bank raises MISC to Hold on better earnings prospect; lifts target price to MYR7.41 from MYR6.33. Raises FY18-19F core earnings-per-share by 18%-24% to reflect expected better crude tanker freight rates and lower chemical tanker losses. Forecasts earnings to bottom in FY18F as petroleum segment “stands on the cusp of recovery,” expects AET unit to turn around in that period. Also notes decline in outstanding tanker orderbook, with broker Poten & Partners projecting spot rates recovery in 2018. Believes possible continuation of OPEC cuts will no longer impact rates as much as in 2017, as lower oil inventories indicate more shipping will be needed to meet demand amid substantial decline in usage of very large crude carriers as floating storage. ”   To read full article, click here.