08 January 2009 05:11 [Source: ICIS news]
SINGAPORE (ICIS news)--Asian petrochemical stocks tracked regional markets’ losses on Thursday with poor economic data assailing investors’ at every turn, halting the equities uptrend at the start of the week.
Export-oriented companies, like those in the petrochemical industry, may not be the strongest bet for investors coming back into equities market given the weak state of global demand, with most economies struggling to post growth, analysts said.
“Not a lot of foreign investors are coming in on dips. They are still cautious so they are loading (stocks) in instalment and they are still playing defensive for now,” said Daniel Soh, Singapore-based economist at consultancy firm Forecast.
Investors maybe picking up companies with more exposure on domestic economies as the host of fiscal stimulus packages introduced from the fourth quarter will benefit them most compared to export-oriented ones, said Soh.
Some economies in the region, including Asia’s largest –
“There will be more such bad news coming but there will be buyers on every dip. Asian markets are not going to go up but they are going to be fairly supported and will be caught in a range in the first quarter,” said Soh.
Global economic recovery is expected to kick in during the second half of 2009 at the earliest so, equities markets may see the trough by the end of this quarter, he added.
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