On Wednesday at 4:26 PM (Bangkok time), the share price of Indorama Ventures Public Company Limited (SET: IVL) fell by 0.99% or THB 0.25 to THB 25.00, with a trading value of THB 1.29 billion
PTT Global Chemical Public Company Limited (SET: PTTGC) dropped by 2.74% or THB 1.00 to THB 35.50, with a trading value of THB 2.12 billion.
IRPC Public Company Limited (SET: IRPC) lost 8.08% or THB 0.16 to THB 1.82, with a trading value of THB 990.47 million.
Kasikorn Securities (KS) wrote that shares of major petrochemical companies experienced notable declines, following significant price appreciation during the Middle East conflict. Investors begin to take profits amid expectations that the war may soon come to an end, as ongoing negotiations between U.S. President Donald Trump and the Iranian leader suggest a possible resolution.
The cessation of hostilities is likely to increase the availability of raw materials for petrochemical producers, which could result in a surplus supply in the market. This would likely put downward pressure on product spreads, affecting industry profitability.
Kasikorn suggests investors consider locking in some profits from petrochemical stocks given these emerging trends, even though the negotiations are not yet finalized and scenarios remain where, for example, the Strait of Hormuz could remain closed despite an end to the conflict.
Furthermore, share prices of key stocks have already reached the broker’s target prices, which are set at THB 25.7 for IVL, THB 35 for PTTGC, and THB 1.4 for IRPC. Kasikorn recommends investors closely monitor further developments in the ongoing conflict and potential scenarios that may impact the market.
