Bualuang Securities recommends switching from refineries to petrochemicals, highlighting IVL and PTTGC as oil surges

IndustryCommodityGeopolitics Impact 4
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Summary · why it matters

Bualuang Securities is advising investors to rotate from refinery stocks into petrochemical stocks that are still lagging, highlighting IVL and PTTGC as standout picks to benefit long-term from crude oil prices surging past 87 dollars per barrel amid escalating Middle East tensions. The average Dubai crude price last week rose by 10.34 dollars to 87.84 dollars per barrel, while the Singapore GRM increased further to 26.83 dollars per barrel. In petrochemicals, although most product prices rose, the chemical spread weakened because naphtha prices increased faster. Bualuang Securities maintains an overweight rating on the petrochemical sector and views that if tensions ease, oil and petroleum product supply will return to the market and pressure prices going forward. As for the Thai stock market today, caution is needed on pressure on the electronics sector from a global sell-off in chip and AI hardware stocks that has spread heavily, especially the KOSPI which plunged more than 12 percent intraday and triggered circuit breakers for a second consecutive day. Meanwhile, global oil prices surged more than 7 percent, supporting positive sentiment for upstream energy and commodity hedges such as PTTEP, PTT, PTTGC, IVL, and IRPC.

Impact on stocks 5

Energy▲ · 2 stocks
Critical Materials & Supply Chain▲ · 1 stocks
Indorama Ventures PCL
IVL
▲ PositiveDemandrelevance

Bualuang Securities recommends IVL as a standout pick to benefit from rising crude oil prices, expecting long-term gains.

Materials▲ · 1 stocks
Energy Transition & Power Demand▲ · 1 stocks

Theme Impact 1

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