Sector News

Asian petchem shares rise on optimism over virus drug, oil prices higher

April 30, 2020
Chemical Value Chain

SINGAPORE (ICIS)–Asian petrochemical shares rose on Thursday following positive news of a possible treatment for the new coronavirus while oil prices continued to soar on on signs the crude glut in the US is not growing as fast as expected.

At 03:00 GMT,  JXTG Holdings was nearly 3% higher in Tokyo, LG Chem rose almost 4% in Seoul and Formosa Petrochemical Corp was up by almost 3% in Taipei.

Japan’s Nikkei 225 Index was 2.58% higher, South Korea’s KOSPI Composite Index rose 0.70% and Singapore’s Straits Times Index was up by more than 2%.

“Ahead of tomorrow’s May Day holiday across the region, Asian equities are expected to continue their winning streak into this final day of the trading week,” Singapore-based UOB Economics & Markets Research said.

China also heads into the week-long Golden Week holiday from 1-5 May.

“There is also intense focus over the potential rebound in domestic Chinese spending and tourism as Chinese cities emerge from the Covid-19 lockdown across the first quarter,” UOB said.

Japan’s industrial output fell to its lowest since January 2013 in March this year on coronavirus-related disruptions at factories and poor overseas demand, government data showed on Thursday.

The seasonally adjusted index of production at factories and mines fell 3.7% month on month to 95.8 against the 2015 base of 100, the Ministry of Economy, Trade and Industry said in a preliminary report.

The Shanghai Composite Index was up by 1.15% after China reported that manufacturing activity in the country continued to expand in April.

China’s official manufacturing purchasing managers’ index (PMI) dipped to 50.8 in April from 52.0 in March, the National Bureau of Statistics (NBS) said on Thursday.

The April PMI reading is above the 50.0 mark which indicates expansion in the manufacturing economy.

Overnight, US-listed and European shares of chemical companies rose on Wednesday, after biopharmaceutical firm Gilead Sciences announced more positive results for its coronavirus drug.

The results showed that a five-day treatment of Remdesivir was as effective as one lasting 10 days, Gilead said.

Crude oil prices rose sharply on Thursday, extending the large gains seen in the previous session, after the US Energy Information Administration (EIA) reported an unexpected 3.7m barrel decline in gasoline inventories and another uptick in motor gasoline supplied to the market.

The drop in stockpiles fueling hopes that energy demand is turning higher now that many US states have begun the process of reopening their economies.

Investor will now turn to their attention European Central Bank (ECB) which will announce its monetary policy decision later on Thursday.

By: Nurluqman Suratman

Source: ICIS

comments closed

Related News

June 3, 2023

Chemours, DuPont, and Corteva reach comprehensive PFAS settlement with U.S. Water Systems

Chemical Value Chain

The Chemours Company (NYSE: CC), DuPont de Nemours, Inc. (NYSE: DD) and Corteva, Inc. (NYSE: CTVA) (the “companies”) today announced they have reached an agreement in principle to comprehensively resolve all PFAS-related drinking water claims of a defined class of public water systems that serve the vast majority of the United States population.

June 3, 2023

Storing hydrogen in coal may help power clean energy economy

Chemical Value Chain

The quest to develop hydrogen as a clean energy source that could curb our dependence on fossil fuels may lead to an unexpected place — coal. A team of Penn State scientists found that coal may represent a potential way to store hydrogen gas, much like batteries store energy for future use, addressing a major hurdle in developing a clean energy supply chain.

June 3, 2023

Soda ash producer WE Soda plans IPO, London share listing

Chemical Value Chain

WE Soda (London), a major producer of soda ash, said it intends to launch an IPO and apply to list its shares on the main market of the London Stock Exchange. The company, wholly owned by industrial conglomerate the Ciner Group (Istanbul, Turkey), said it is the world’s largest producer of natural soda ash.

How can we help you?

We're easy to reach