KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
PETRONAS Chemicals Group Bhd sank to its lowest level since April after reporting another quarterly loss, with analysts cautioning that the petrochemical giant faces a longer and more painful downturn ahead.
The latest quarter’s core net loss — excluding exceptional items — was the company’s largest since its 2010 listing, prompting consensus forecasts to now price in a full-year loss for PChem.
Hong Leong Investment Bank (HLIB) said the sector remains under heavy pressure due to China’s aggressive capacity expansion and sluggish downstream demand, a combination that continues to depress pricing across key product chains.
PChem plunged as much as 13% intraday to RM2.83 before closing 10% lower at RM2.92 on Monday, with over 34 million shares traded. The counter has shed nearly 40% year-to-date, cutting its market value to about RM23 billion.
Broker sentiment remains overwhelmingly bearish: 12 sells, four holds, and just three buys, Bloomberg data show. HLIB is the most bearish among 21 research houses, trimming its target price to RM2.06 and calling current valuations “lofty” given deteriorating fundamentals.
Maybank Investment Bank said olefins and derivatives — PChem’s core segment — are likely to remain stuck at multi-year low prices through 2026 as China continues its heavy supply rollout. The bank warns earnings may stay volatile as the downcycle has yet to bottom.
Key Takeaways for Investors
• Deepest core quarterly loss since listing
Signals that PChem’s margin pressure is structural rather than temporary.
• China remains the dominant headwind
Record capacity additions and slower demand are crushing global petrochemical spreads.
• Street turns decisively bearish
12 sell calls vs only 3 buys — one of the most negative profiles among KLCI heavyweights.
• Valuations still not cheap, analysts say
HLIB’s sharply lower TP of RM2.06 suggests further downside risk.
• Downcycle likely extends into 2026
Weak olefins pricing expected to persist for another 12–18 months.
Comments
Post a Comment