Last updated on December 25, 2025
KUALA LUMPUR (Aug 21) – Petronas Chemicals Group Bhd’s shares surged again on Thursday as investors bet on easing overcapacity in the global petrochemical sector, driven by restructuring plans in China and South Korea.
The stock climbed 52 sen, or 12.44%, to RM4.70 by midday, spurred by high trading activity, with over 34 million shares changing hands. This rally follows an earlier collapse of 11% last Wednesday after the company posted a record quarterly loss, bringing its two-day gains to more than 25%.
Analysts at Kenanga Investment Bank cited proposed capacity cuts in China and South Korea as catalysts for price recovery in 2026. Kenanga upgraded Petronas Chemicals to “outperform” from “market perform”, boosting its target price to RM5.30, up from RM3.36. Nomura also raised its stance to “buy”, raising the target to RM5.15 from RM4.01.
Kenanga noted that even temporary global supply constraints of 3–4%—especially in the absence of immediate new production ramps—could trigger a cyclical upturn in petrochemical prices. China is reportedly considering repurposing aging petrochemical plants, while South Korea plans significant cuts to its naphtha-cracking capacity, reflecting a broader structural shift in the sector’s supply dynamics.
