Deluem - because the 2024 Bursa energy index did better than S&P 500 energy
In 2023, the Bursa Malaysia energy index grew at 5.4 %. In contrast, the S&P 500 energy index contracted at 3.7 %. WTI crude oil prices contracted by 9.9 %
Of course the composition of the companies making up the indices for Bursa Malaysia are different from that for the S&P 500.
If you are hunting for oil and gas companies to invest in, doesn’t it makes sence to look at Bursa Malaysia counters. In this context, Deleum looks like a good candidate.
It did well when crude oil prices were high. But when oil prices were in the trough part of the cycle during 2015 to 2019, the company performance deteriorated. Its performance improved over the past 2 years due to the better crude oil prices. Over the cycle, the Group delivered average returns that were greater than its cost of funds. The Group is also financially sound
When you compare Deleum ROE trend with the share price trend, do you think that there is still an opportunity to go in?
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
