TOP Jumps 6.5% as GRM Tends to Increase in Response to the Discount OSP from Saudi

The share price of Thai Oil Public Company Limited (TOP) jumped ฿2.25/share or 6.43% to ฿37.25/share as of 14:31 on April 14, 2020. The highest share price was ฿38.00/share while the lowest price was ฿36.75/share with a trading value of 1,281 million baht.

 

Kasikorn Securities stated in the analysis with a “BUY” recommendation on TOP and a target price at ฿51.00/share that the refinery-related stocks would receive positive factors from the discount of Official Selling Price (OSP) from Saudi Arabia in which its state-enterprise Saudi Aramco announced a reduction in the price of exported Arab Light crude oil (including Arab Extra Light) to the Asian market in May 2020 by USD7.3 per barrel.

The discount would reduce the cost for the refinery sector, resulting in a higher gross refinery margin (GRM). Moreover, the share price of TOP is not expensive, while being traded at Fwd PBV2020 at 0.6x.