• Pursuing opportunities of PNG: Oil Search Limited(ASX: OSH) stock fell over 1.97% on September 13, 2016 on the back of oil price movement. On the other hand, the group has entered into agreements with Gini Energy Limited (parent company is CNOOC Limited) to acquire a 40% interest in each of PPL 374 and PPL 375. These licences are at over 150 kilometres south of Port Moresby in the deep water section of the Gulf of Papua, PNG, which comprises over 24,936 km², with water depths ranging between 1,000 and 2,500 metres. ExxonMobil would acquire a 40% interest in each licence while Gini would retain a 20% interest in each licence. This move by the group is a part of their focus on PNG, and these assets in offshore Papuan Gulf promises major gas potential.
• Recommendation: We believe the stock would recover in the coming months, and give a “Buy” recommendation on the stock at the current price of $6.45

• Decline in government spending on Aged care sector: Japara Healthcare Ltd (ASX: JHC) stock fell over 2.15% on September 13, 2016 leading to a fall of over 27% in the last four weeks. This decline in the stock is mainly due to the government spending cut on Australian Aged care sector. Recently, Australian government reported that they would do a $1.2 billion funding cut in the 2016/17 budget. We believe that the pressure in the stock will continue in the coming months.
• Recommendation: We give an “Expensive” recommendation on the stock at the current price of $1.815

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