4 Refinery Stocks Rally as GRM Hit 2-Year High after Global Economy Shows Growth Trend
Four oil refinery-related stocks rallied today since refinery margins reached a two-year high of US$5 per barrel as the global economy recovers from the COVID-19 pandemic
As of 14:40 local time in Thailand, the share price of Star Petroleum Refining Public Company Limited (SPRC) rose ฿0.50/share or 4.67% to ฿11.20/share, with a trading value of 449 million baht.
The share price of Esso (Thailand) Public Company Limited (ESSO) rose ฿0.30/share or 3.66% to ฿8.50/share, with a trading value of 362 million baht.
The share price of Thai Oil Public Company Limited (TOP) rose ฿1.00/share or 1.77% to ฿57.50/share, with a trading value of 747 million baht.
The share price of PTT Global Chemical Public Company Limited (PTTGC) rose ฿0.50/share or 0.77% to ฿65.25/share, with a trading value of 303 million baht.
Globlex Securities (GBS) indicated that the refining margin increased to a two-year high of $5 per barrel, owing to the global economy’s recovery following widespread administration of coronavirus vaccines and the gradual reopening of many cities worldwide. Spreads on gasoline increased 18% from the previous quarter to the present, diesel rose steadily 31%, and jet fuel rose about 71%, all of which contributed to the overall refining margin.
GBS, on the other hand, is optimistic about refinery-related stocks’ third-quarter earnings, as GRM regained above US$3 a barrel, close to breakeven levels of US$3 – US$4 a barrel. Additionally, oil prices remained stable at a record high of US$75 per barrel, allaying concerns about stockpile losses. GBS views TOP, SPRC, ESSO, and PTTGC positively.