03 October 2008 11:16 [Source: ICIS news]
SINGAPORE (ICIS news)--Asian petrochemical stocks took a beating on Friday as investors fretted over the heightened possibility of a global recession, taking little comfort in efforts of both the US and Europe aimed at preventing a financial meltdown through bank bailouts.?xml:namespace>
Much weakened demand had slowed down trade in petrochemicals companies, with some product prices falling to record lows and it appeared the situation would not improve anytime soon, analysts said.
At the close of trading, ?xml:namespace>
Chinese state-owned refiner PetroChina slumped 5.28% at the close and Sinopec fell 2.56%, as
“The problems so far have already contributed to some slowing down in real sector activities and it looks like the world growth is going down another notch,” said David Cohen, chief economist at consultancy firm Action Economics.
A significant weakening of the
And with Europe and
“Some slowdown in global export demand is inescapable. Even if demand from emerging countries shows a little more momentum, it will not upset further slowing in G3 [
The US Senate’s approval of a revised $700bn bailout package failed to cheer the market on Thursday and the weakness persisted ahead of the vote by the House of Representatives later on Friday.
“While the markets still remain hopeful the package will be passed by the [
($1 = €0.72)
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