Donald Trump has reclaimed the White House after a divisive campaign that defied polls and criminal charges. Kamala Harris conceded but vowed to continue her "fight for freedom and dignity." Trump’s win represents a strong shift in voter sentiment, with Americans prioritizing economic and border security concerns. Harris consoled her supporters, calling for resilience while refusing to align with Trump’s vision. Biden plans to address the nation on Thursday. Trump, along with Vice President-elect JD Vance, aims to take office on January 20 with promises of sweeping changes, including firing civil servants he deems disloyal and possibly replacing regulatory heads. He has tapped prominent figures, such as Elon Musk and Robert F. Kennedy Jr., for administration roles. Trump's Electoral College win was bolstered by strong support across at least five battleground states. His victory also secured a Republican majority in both the Senate and House , easing the way for h
Lotte Chemical Titan Holding Bhd shares fell to their lowest level since April 2020 on Thursday, with investors reacting to widening quarterly losses and an uncertain future. The company’s stock dropped by as much as 4.5 sen, or nearly 5%, to 91.5 sen, giving it a market capitalisation of RM2.13 billion.
The petrochemical company faces challenges as product spreads remain under pressure due to a global supply glut, primarily from new capacity expansions in China. Analysts at TA Securities noted that Lotte Chemical is likely to stay in the red “over the next few quarters” and maintained a 'sell' rating on the stock.
The company has reported quarterly losses since 2QFY2022 and is expected to continue to report losses through this year. Analysts estimate that Lotte Chemical may not return to profitability for another two years, according to Bloomberg consensus data.
A significant challenge for Lotte Chemical is the squeeze in spreads between naphtha costs and polymer selling prices. Maybank Investment Bank warned that sustained elevated naphtha prices combined with weak polymer prices create a “double whammy” for the company, which it expects will continue to impact margins. The bank also upheld its 'sell' rating and advised investors to steer clear of the petrochemical sector for now.
In addition, CGS International highlighted that Lotte Chemical’s cash reserves have dwindled to RM461 million, even after factoring in RM537 million from recent financing. The firm suggested investors 'reduce' their positions in the stock.
Lotte Chemical's third-quarter results revealed net losses of RM246.42 million, affected by inventory write-downs, losses from a 40%-owned US associate due to maintenance shutdowns, and increased foreign exchange losses. The company cited global uncertainties, including the Russia-Ukraine war and Middle East conflicts, which are influencing crude oil prices, as contributing factors to the challenging environment.
With ongoing economic headwinds, Lotte Chemical expects the global business climate to remain uncertain in the near future, with geopolitical factors continuing to weigh on its performance.
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