KUALA LUMPUR: Shares of Petronas Chemicals Bhd fell below RM7 in very active trade as profit taking picked up in line with the weaker broader market on Friday, May 6.
At 11.04am, it was down 12 sen to RM6.96 with 11.67 million shares done.
The FBM KLCI fell 7.55 points to 1,513.63. Turnover was 307.90 million shares done valued at RM417.11 million. Losers beat gainers 376 to 128 while 264 stocks were unchanged.
JP Morgan Research, in a recent report, has an Overweight rating on Petronas Chemicals at RM7.80.
'We see Petronas Chemicals, the largest SE Asia petrochem producer by volume and revenue, as an unique opportunity to invest in a low-cost gas-based petrochemical producer in Asia that has a diverse product portfolio including fertilisers,' it said.
JP Morgan Research said the company benefited from the high oil price environment as most of its raw material costs are not linked to crude but product prices are.
'This ultimately should benefit Petronas Chemicals as most of their production is based on natural gas, which is currently significantly cheaper than crude, mainly due to the discovery of vast amount of shale gas in the US which was deemed too expensive to recover previously,' it said.
At 11.04am, it was down 12 sen to RM6.96 with 11.67 million shares done.
The FBM KLCI fell 7.55 points to 1,513.63. Turnover was 307.90 million shares done valued at RM417.11 million. Losers beat gainers 376 to 128 while 264 stocks were unchanged.
JP Morgan Research, in a recent report, has an Overweight rating on Petronas Chemicals at RM7.80.
'We see Petronas Chemicals, the largest SE Asia petrochem producer by volume and revenue, as an unique opportunity to invest in a low-cost gas-based petrochemical producer in Asia that has a diverse product portfolio including fertilisers,' it said.
JP Morgan Research said the company benefited from the high oil price environment as most of its raw material costs are not linked to crude but product prices are.
'This ultimately should benefit Petronas Chemicals as most of their production is based on natural gas, which is currently significantly cheaper than crude, mainly due to the discovery of vast amount of shale gas in the US which was deemed too expensive to recover previously,' it said.
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