Petronas Chemicals

Petronas Chemicals Group Berhad (Stock code 5183) was listed in BursaMalaysia on 26th November 2010. Its price performance in BursaMalaysia is not very spectacular with the closing price on 11 April 2014 at RM6.75. At this price the PE is 15.35 with a yield of about 3%. Earning per share for year ending 2010 is 40 sen, 2011 is 45 sen, 2012 is 31 sen and 2013 is 40 sen. Dividend per share paid for year ending 2010 is 19 sen, 2011 is 16 sen, 2012 is 22 sen and 2013 is 40 sen. So with that said, I can safely predict that this comnpany will remain profitable and will pay dividend in the coming year.

Petronas Gas (Stock code: 6033) close at RM23.98 on 11th April 2014. With this closing price PE is 32.97 and yield about 2%

Petronas Dagangan (Stock code: 5681) close at RM30.26 on 11th April 2014; with PE 35.92 and yield about 2% also.

Eventhough these 3 companies are in different business they are all GLC (Government Linked Company).

Petronas Chemicals is in the news recently. On 10th April 2014 the partnership with BASF to produce citral and its precursors becomes a reality and the joint investment is RM1.5 billion. I believe that this joint investment once come to fruition will be earning accretive, that is when it goes into production in 2016. It is still far away but this may prompt some long term investors to accumulate Petronas Chemicals shares.

Let us look at the technical aspect of this counter below.

 Looks like there is suppot at RM6.65 which is close to the 11th April 2014 closing. Does it sounds like accumulation opportunity , for long term I mean.

Look at the more recent chart.below.

 It has just pierce through the wedge and no volitality yet. I predict that its price  will move above RM6.75 soon and maybe it is good to buy some if your holding of Petronas Chemicals is still small.

Invest with responsibility and good luck.

Petronas Chemical ====> just off the starting block

The chart above is for Petronas Chemical, which is just listed in BursaMalayisa on 26th November 2010.
This counter attracts institutional investors and has so far displayed great resilience when it is traded above the institutional IPO price of RM5.20. The weaker institutional investors would have sold off at least part of their holding and the resilience may be due to the stronger institutional investors still willing to accumulate on weakness. This counter is very liquid as it has eight (8) billion shares issued. coupled with the recent IPO there is ample free floating shares ready to find stronger hands.
From the chart above there is a possibility of a temporary double top at RM6.39 and a support at RM 5.93.
Also to be noted is that it is trading within an uptrend channel. Since it is now near the lower side of the uptrend channel and near to the support of RM5.93 it maybe good and possible to buy at below RM 6 so that a profit can be made if it goes up and away from the lower channel.It may move up to challenge the double top at RM6.39. If it fails to break through RM6.39 then it should be sold, otherwise if RM6.39 is successfully penetrated it can go higher and the wisdom is to let the profit run.

Another possibility is that it may go below the support line. If this happens a stop out will have to be executed say at RM5.80
The above is just my guess.

For those who had viewed the previous chart and read my comment may like an update. It looks very much like the double-top may be challenged soon as the price is pulling away from the lower channel support line.