Chems soar as US Dow Jones Industrial Average rises 340 points

27 October 2011 21:31  [Source: ICIS news]

HOUSTON (ICIS)--North American chemical stocks rose sharply on Thursday as the Dow Jones Industrial Average gained nearly 340 points.

The index closed at 12,208.55, up 2.86%.

The Dow Jones Industrial Average rose following news that European leaders reached a deal to resolve the region's sovereign debt crisis.

As part of the agreement, holders of Greek bonds will accept a voluntary 50% loss while banks must also raise capital to protect themselves from possible future defaults.

Leaders also agreed to raise the eurozone bailout fund to €1,001bn ($1,390bn), possibly with help from non-European countries.

The news sent European markets higher, and the trend continued in the US.

North American chemical stocks rose much higher then the general market, with the Dow Jones US Chemicals Index gaining by 5%.

Every company followed by ICIS rose.

Titanium dioxide (TiO2) producer Kronos rose by the most, gaining nearly 15%. Many companies rose by more than 10%, including metal-chemicals producer Quaker Chemical; compounder A Schulman; specialty chemicals producer Solutia; adhesives producer HB Fuller; PVC producer Georgia Gulf; and specialty chemicals producer Chemtura.

Among the majors, DuPont rose by nearly 6% and Dow Chemical rose by 8%.

Industrial gasses producer Praxair rose by 1% and fertilizer company PotashCorp rose almost 3%.

Natural-gas-liquids supplier Enterprise Products rose by the least, gaining less than 1%.

($1 = €0.72)

By: Al Greenwood
+1 713 525 2645

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