Kasikorn Securities (KS) wrote in analysis that the ongoing conflict surrounding the Strait of Hormuz remains unresolved, with continued ambiguity over plans to reopen the vital waterway.
In an official statement made earlier today, U.S. President Donald Trump emphasized that the United States would only consider a ceasefire if the Strait of Hormuz is fully open and operating without restrictions. President Trump also remarked that the war is expected to conclude within days, as most U.S. military objectives have reportedly been achieved.
However, KS noted that President Trump’s statement lacked concrete measures or a clear roadmap for reopening the key passage. The brokerage firm remained skeptical that Iran will agree to allow free passage before negotiations are concluded. As a result, ongoing disruptions in oil and gas supply are likely, maintaining elevated prices for both crude oil and key petrochemical spreads.
As such, KS recommends letting profits run on petrochemical stocks given the present market dynamics. Among sector picks, the broker favors Indorama Ventures PCL (SET: IVL), setting a target price at THB 25.70 and an “Outperform” rating, and PTT Global Chemical PCL (SET: PTTGC) with a target price at THB 35 and an “Outperform” rating.
The analyst firm also underweighing IRPC PCL (SET: IRPC), setting a target price at THB 1.40 and an “Neutral” rating, and The Siam Cement Group PCL (SET: SCC), with a target price at THB 177 and an “Underperform” rating
The favored stocks are perceived to carry less feedstock-supply risk amid the ongoing turmoil.
