In the early hours of trade on Wednesday, shares of six major energy companies rose as investors responded favorably to reports that Saudi Arabia and Russia had agreed to extend their voluntary production cut until August.
The share price of PTT Exploration and Production Pcl. (SET: PTTEP) rose THB2.00/share, or 1.32%, to THB153.00/share, with a trading value of THB579 million.
The share price of PTT Pcl. (SET: PTT) rose THB0.25/share, or 0.74%, to THB34.00/share, with a trading value of THB402 million.
The share price of PTT Global Chemical Pcl. (SET: PTTGC) rose THB0.50/share, or 1.31%, to THB38.75/share, with a trading value of THB329 million.
The share price of Thai Oil Pcl. (SET: TOP) rose THB0.25/share, or 0.56%, to THB45.25/share, with a trading value of THB89 million.
The share price of Star Petroleum Refining Pcl. (SET: SPRC) rose THB0.10/share, or 1.24%, to THB8.15/share, with a trading value of THB56 million.
The share price of IRPC Pcl. (SET: IRPC) rose THB0.02/share, or 0.85%, to THB2.36/share, with a trading value of THB9 million.
Krungsri Capital Securities expects the SET Index to climb and test 1,520 – 1,525 resistance level. Energy counters will likely lead gains on stronger crude prices after Saudi Arabia extended the 1 million bpd output cut to end-August and Russia pledged to trim crude exports by 500,000 bpd in August. The improving domestic political scene could also lend support. However, investors might unload shares to mitigate risks ahead of U.S. job data due this week and trigger intraday weakness.
For investment strategy, Krungsri recommends “BUY” on PTTEP, TOP, BCP, SPRC, PTTGC and as crude prices rebounded.
PTTEP (BUY/IAA Consensus TP Bt169 vs Bt151 close) – there could be support from the rebound in crude prices to above US$70/bbl after Saudi Arabia cut output and Russia pledged to cut exports.
