Oil Search shares have risen phenomenally overthe past three weeks.
Oil Search Share prices reached a record $8.98 last Friday before easing to $8.90.
After trading at just under $8.50 in late August,the share price has now risen to trade between $8.80 and $8.90.
Analysts believethe rise in Oil Search Shares price is due tothe end inthe construction ofthe LNG project. And, provided thatthere are no risks, investors are now putting money intothe shares.
Dominic Beange from Kina Security believes thatthere has been strong alliance performance ofthe company.
“There are four things to think about;the first thing isthe recognition that Oil Search andthe LNG project is been very well managed that Oil Search itself is particular getting recognition for the good management ofthe company,” said Beange, Kina Assest Management. “Secondly,there’s been a re-rating ofthe company over several years. That’s allowedthe shared price to increasing to reflect what isthe real value rther than being discounted for worry aboutthe future. “Thirdly, we are getting close tothe LNG Production. I think that is also givingthe people far more confident that this project will be delivered because it has been well managed to date. “The last thing is thatthere is up-siding inthe stock through New Exploration,” Beange said.
Earlier this year, Oil Search announced a first half profit underline solid performance inthe company acrossthe board and good results in its drilling and exploration program.
Despite concerns been raised over Kulim andthe Ok Tedi issues,the rise in Oil Search Shares indicate that investors are confident aboutthe fundamentals in Papua New Guinearsquo;s economy.
Caption: Dominic Beange from Kina Security believes thatthere has been strong alliance performance ofthe company.
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