Keep Eyes on Petrochem-Transport Stocks as Trade Talks Renewal to Make a Possible Rebound

After the U.S. President Donald Trump had met with the Chinese President Xi Jinping in an extended meeting at G20 summit in Osaka. Both leaders had agreed to cease fire and resume the trade talks from where it had been left.

One of the major point in this meeting was the lift of Huawei’s ban from the U.S. blacklist, allowing companies to buy Huawei technologies again.

Trump said that China had agreed to purchase a lot of U.S. farm products which would make ten of billions of dollars for the U.S., but the Chinese officials still had yet to confirm the matter.

The talks between delegates will continue as it used to be, though still no schedule as of now. In addition, the U.S. will also stop increasing tariffs on the remaining of Chinese goods worth $300 billion.

From the research of “Kaohoon Online”, the share prices of many group of stocks have been decreasing due to the result of pressuring from trade war between the two countries. 

The top 3 stocks which have been decreasing since the beginning of the year are as follows:

The most decrease in share price with the most liquidity in petrochemical sector are:
1) Indorama Ventures Public Company Limited (IVL): the share price of IVL decreased 13.36% to THB47 from THB54.25 on 28 December 2018.
2) PTT Global Chemical Public Company Limited (PTTGC): the share price of PTTGC decreased 10.18% to THB64 from THB71.25 on 28 December 2018.
3) Gratitude Infinite Public Company Limited (GIFT): the share price of GIFT decreased 9.63% to THB3.38 from THB3.74 on 28 December 2018.

The most decrease in share price with the most liquidity in refinery sector are
1) IRPC Public Company Limited (IRPC): the share price of IRPC decreased 13.04% to THB5 from THB5.75 on 28 December 2018.
2) Bangchak Corporation Public Company Limited (BCP): the share price of BCP decreased 3.94% to THB30.50 from THB31.75 on 28 December 2018.

The most decrease in share price with the most liquidity in transportation and logistics sector are
1) THAI Airways International Public Company Limited (THAI): the share price of THAI decreased 12.40% to THB10.60 from THB12.10 on 28 December 2018.
2) Regional Container Lines Public Company Limited (RCL): the share price of RCL decreased 9.66% to THB4.30 from THB4.76 on 28 December 2018.
3) WICE Logistics Public Company Limited (WICE): the share price of WICE decreased 7.69% to THB3.36 from THB3.64 on 28 December 2018.

The most decrease in share price with the most liquidity in banking sector are
1) TMB Bank Public Company Limited (TMB): the share price of TMB decreased 10.91% to THB1.96 from THB2.20 on 28 December 2018.
2) CIMB Thai Bank Public Company Limited (CIMBT): the share price of CIMBT decreased 6.49% to THB0.72 from THB0.77 on 28 December 2018.
3) Bangkok Bank Public Company Limited (BBL): the share price of BBL decreased 2.96% to THB197 from THB203 on 28 December 2018.

However, all of the share prices that have been decreasing might have a chance to make a rebound after an oversold. Moreover, the result from the renewal of the trade talks between the U.S. and China would have positive sentiment to companies with business operations relying on the global economy.