CIMB Initiate Coverage on Petronas Chemical Group

CIMB Research initiated coverage on Petronas Chemical or PCHEM today with OUTPERFROM call with Target Price of RM7.25. At the close, PCHEM lost 10 sen to close at RM5.86.

My view:
PCHEM is a FBM KLCI stocks and for this counter to go down so much when CIMB initiate coverage on this stock is something rarely seen. However, to be fair the South East Asia market performed badly today with Jakarta Composite Index down 152.90 points to 3478.55 and Singapore Straits Times Index lost 32.08 points to 3229.27 points.

All these seems like foreign funds have started to take profit. Be careful and start to unload $ from now onwards...