The share prices of TOP and SPRC dropped sharply on Friday after Asian benchmark Singapore gross refining margin fell and China is set to impose another lockdown on Saturday morning in order to conduct a mass Covid-19 test.
Thai Oil Pcl. (SET: TOP)’s share price ended the morning session trading at THB57.50/share, dropping THB3.25/share or 5.35%, with a trading value of THB1,589 million.
Meanwhile, Star Petroleum Refining Pcl. (SET: SPRC)’s share price ended the morning session trading at THB13.00/share, dropping THB0.30/share or 2.26%, with a trading value of THB330 million.
CGS-CIMB Securities (Thailand) stated that a steep decline in the share prices of TOP and SPRC was caused by a dip in Singapore GRM after it reached a new high of US$25.2 per barrel last week. Coupled with concerns that China will shut its financial hub Shanghai on Saturday morning to undertake a mass Covid-19 test, which has sparked fears that the city’s economy could be hit by another shutdown
CGS-CIMB still maintains its “BUY” rating on TOP (TP: THB69.00) and SPRC (TP: THB15.00) as an average GRM in 2Q22 remains elevated.
