Weekly sharing #29 Apr. 2024

$S&P 500 Index (.SPX.US)$  1.71% DJI  0.8% Nasdaq  4.2% 
$S&P 500 Index (.SPX.US)$ and $Nasdaq Composite Index (.IXIC.US)$ achieved their best week since November due to strong earnings by Big tech companies and recent U.S. inflation figures.

Events to watch: 
- Continuation of earnings season from tech giants such as Apple, AMD and Amazon
- 2 May - Federal Reserve’s next interest rate decision 
- 3 May - Nonfarm payroll and Unemployment rate 

$FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ increased 1.78% and ended at 1575.16
Notable sectors : Utilities(Regulated) sector increased by 5.73%, software sector increased by 8.91%, and Hardware sector by 7.35% 
Event to watch: 
- 1 May – Labour day 
- 2 May – S&P global manufacturing PMI
- Annual general meeting of listed companies such as CIMB Group Holdings Bhd, Petronas Dagangan Bhd, Nestle(Malaysia) Bhd, NETX Holdings Bhd, Westports Holdings Bhd, MISC Bhd, Bintulu Port Holdings Bhd

Will Oil Prices Spike cause a profit for Hibiscus Petroleum that expects production from the exploration well, Bunga Aster-1 in May?

Price Trend
Current prices are up by 7.8% since Jan 2024 but still has not breached its all-time high at 2.825 in October 2023.

Company Profile
Hibiscus Petroleum Berhad is an investment holding company that explores, develops and produces oil and gas. They either operate or co-operate in production sharing contracts or concessions for production in Malaysia, Vietnam, the United Kingdom, and Australia. Hibiscus Petroleum is also a shariah compliant  stock.

Recent development
Hibiscus Petroleum Bhd has finished drilling the Bunga Aster-1 exploration well, with initial oil production anticipated to commence in May.
Hibiscus Petroleum Bhd, an oil and gas exploration and production company, aims to capitalize on the economic upswing in the Tok Bali region (in Kelantan) by establishing it as one of its operational centers.

Latest earnings
The company’s 2QFY2024 net profit increased by 45.22% from RM70.47 million last year to RM102.34 million, or 12.72 sen per share as average realised oil prices were higher and operating costs were lower.
A year ago, quarterly revenue fell by 12% as sales volume and average realised gas prices were lower.

Opportunities
- Increased oil prices that is backed up by a positive outlook from analysts on energy stocks as oil prices may spike from Middle East crisis. A completed drilling of the Bunga Aster-1 exploration well that could time the market finely as production begins in May
- A new drilling campaign in Tok Bali to leverage the economic boom in the Tok Bali area in Kelantan
- Hibiscus Petroleum Bhd’s subsidiary has received a 30-month extension for the development license of the Fyne Field oil field from the North Sea Transition Authority (NSTA) in the UK. As a condition for the license extension, the NSTA expects the company to attain an approved Field Development Plan and Production Consent by September 30, 2026.

Risks
- Unwarranted geopolitical conflict that drives oil prices down 
- Licensing issues due to not fulfilling conditions given by authorities 

This video is provided for informational purposes only. No content in the video shall be considered a recommendation or solicitation for the purchase or sale of financial products. Moomoo MY does not provide financial advice. Please assess your risks and consult your financial adviser.