Chemical companies in Asia see shares slide Aug. 19 on concerns over double-dip recession in U.S., instability at European banks, gloomy market reports; LG Chem leads decline, closing down 14.69%
August 19, 2011
– Shares of Asian chemical companies plunged Aug. 19 on fears of a double-dip recession in the U.S., worries over the stability of European banks, and disappointing market reports, ICIS news reported the same day.
Fears of a slowing U.S. recovery were stoked by a report from the Philadelphia Federal Reserve Bank indicating that U.S. mid-Atlantic manufacturing activity dropped to the lowest level since early 2009, ICIS reported, citing research from the Commonwealth Bank of Australia. Also adding to concerns was a drop in U,S. home sales last month.
The stability of European banks was called into question when a report from UBS Wealth Management Report noted that U.S. regulators were increasing their oversight of domestic operations of European banks due to worries related to the European debt crisis.
Among Asian producers, LG Chem Ltd. led the decline, falling 14.69%, followed by SK Innovation Co. Ltd., which slumped 13.33%. Both companies’ losses exceeded losses posted by the Korea Composite Stock Price Index, which was down 6.22%.
Malaysia-based petrochemical producer Petronas Chemicals Group Berhad saw a more modest decline of 2.58% while the benchmark Kuala Lumpur Composite Index closed down 1.29%.
Beijing-based PetroChina Co. Ltd. closed down 4.09%, exceeding the drop in the Hang Seng Index, which fell 3.08%.
The primary source of this article is ICIS news, Surrey, England, Aug. 19, 2011.