30 September 2009 10:11 [Source: ICIS news]
SINGAPORE (ICIS news)--Thailand’s petrochemical stocks, led by PTT affiliates and Siam Cement (SCC), fell sharply on Wednesday following a court decision temporarily stopping construction of 76 projects at the Mab Ta Phut industrial estate in Rayong province.
The two companies accounted for 80% of the baht (Bt) 400bn ($11.9bn) worth of projects involved, said Naphat Chantaraserekul, a Bangkok-based senior investment analyst at brokerage Kim Eng Securities.
"There will be a short-term negative impact on sentiment but I wouldn’t expect operations to be affected," he said.
PTT slipped 0.39% while SCC retreated 2.64%.
The Mab Ta Phut industrial estate is the eighth-largest petrochemical hub in the world and is home to manufacturing facilities of more than 50 chemical companies.
On the court decision’s possible repercussions on long-term investments at the site, Kim Eng’s Chantaraserekul said: “Welcome to
SCC said in a filing to the Stock Exchange of Thailand that its polyolefins projects due for start-up between late 2009 and mid-2011 would be affected.
PTT also expressed concerns in a separate filing that its investments in 25 projects might be affected, a day after the court decision was handed down late on Tuesday.
The company said it was mulling the filing of an appeal to the
The companies have 30 days to appeal the decision by the
($1 = Bt33.67)
With additional reporting by Bohan Loh
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