Asia petchem stocks rally as confidence returns

02 October 2007 10:45  [Source: ICIS news]

SINGAPORE (ICIS news)--Petrochemical stocks in Asia closed higher on Tuesday as regional markets rallied on overnight Wall Street gains after former US Federal Reserve chairman Alan Greenspan and Citigroup suggested credit-market losses will abate.

 

“A number of [regional stock markets] hit record highs, clawing their way up to levels before the US subprime mortgage crisis emerged,” said Chris Eng, an analyst at Malaysian brokerage OSK Securities.

 

“The general feeling is that the crisis is over. People are feeling that oil prices are high because of the weaker US dollar… Confidence has returned,” he added.

 

Demand for petrochemical stocks would also go up as long as the commodities’ margins remained sustainable, he added.

 

Japan’s Mitsubishi Chemical’s stock ended 1.8% up on the Nikkei 225, while Shin-Etsu Chemical’s share price closed 3.36% higher.

 

In South Korea, Honam Petrochemical’s stock closed 4.52% higher at the day’s close and LG Chem’s share price ended 3.55% higher.

 

China energy majors Sinopec and Petrochina’s shares closed 3% and 1.35% higher respectively on Hong Kong’s stock exchange.

 

Japan’s Nikkei 225 index ended 1.19% higher on the day at 17,046.78 points, while the benchmark Korea Composite Stock Price Index (KOSPI) closed 2.62% up at 2,014.09 points.

 

Hong Kong’s Hang Seng Index closed 3.9% up on Tuesday at 2,8199.75 points, while the Kuala Lumpur Composite Index (KLCI) ended 1.6% higher at 1,368.72 points.

By: Jeanne Lim
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly