Thai refinery stocks edged higher on Tuesday as the group tried to shake off earlier negative sentiment of a potential downside risk to their earnings as the government was looking into asking corporates to subsidise fuel prices.
The share price of Thai Oil Public Company Limited (SET: TOP) rose THB1.25 or 2.45% to close the morning session at THB52.25 per share. The share price rose 3.03% in the past five days, but plunged 10.53% in one month.
Bangchak Corporation Public Company Limited (SET: BCP) rose THB1.00 or 3.28% to close the morning session at THB31.50 per share. The share price rose 3.39% in the past five days, but plunged 5.43% in one month.
IRPC Public Company Limited (SET: IRPC) increased THB0.02 or 0.62% to THB3.26 per share. The share price rose 3.85% in the past five days, but plunged 4.14% in one month.
Star Petroleum Refining Public Company Limited (SET: SPRC) jumped THB0.50 or 4.27% per share to THB12.20 per share. The share price rose 0.86% in the past five days, but plunged 0.85% in one month.
Esso (Thailand) Public Company Limited (SET: ESSO) gained THB0.30 or 2.68% to THB11.50 per share. The share price rose 3.70% in the past five days and also increased 12.56% in one month.
Price performance of SPRC and ESSO are better than the other three refiners as the aforementioned two corporates have very little downside risks regarding the impact from subsidising fuel prices due to having major holders as foreign corporates, which would be difficult for the Thai government to use law enforcement for the subsidy unlike TOP, BCP and IRPC that have the government sectors as their major shareholders.
Still, the Relative Strength Index (RSI) 14 days indicated that IRPC, BCP and SPRC are in their mid 30%, which is close to an oversold territory. Meanwhile, TOP slightly dipped into the territory at 27%. ESSO is the only securities that has an RSI at 50%.
