Rebound in Ezra Seen to Be Fleeting Amid Oil Industry Woes
- Oil-services shares led by Ezra top Singapore index gains
- Companies seek extensions on payments due next year amid slump
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Ezra Holdings Ltd. is leading a rebound among Singapore oil-services providers this month, after bearish bets pushed the company’s shares to all-time lows. The rally will be short-lived amid deepening financial distress in the industry, analysts say.
Ezra has surged more than 40 percent in September, and oil-related companies including Ezion Holdings Ltd. and Vard Holdings Ltd. are among the top five gainers on the 129-member FTSE Straits Times All-Share Index for the month. Traders are probably speculating Ezra will get the funds needed to refinance maturing debt after it held talks with lenders, and also covering short positions, said Joel Ng, an analyst at KGI Fraser Securities Pte in Singapore.