Petronas Losing: Petronas Shares Down to earth as shares down on Eurozone crisis and declining oil prices

The Petronas Unit(PChems) is a good stock to play as recession resist counter. However when you are play stock market game the trend is so unpredictable and thar call stock market game.
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PETALING JAYA: Some Petroliam Nasional Bhd (Petronas)-linked stocks took a beating, as uncertainties over the eurozone crisis and declining oil prices prompted jittery investors to take profit and unwind some of their positions in markets across Asia.
Petronas Chemicals Bhd (PChem) saw RM2.16bil wiped off from its market capitalisation. The counter ended 27 sen lower at RM5.78, nearing a range it has not seen since early January this year. The stock reached an intra-day low of RM5.74.
In November, the largest petrochemical producer in South-East Asia raised RM12.8bil from the market in its initial public offering (IPO), with a price of RM5.20 for institutional investors.

Meanwhile, Petronas Dagangan Bhd (PetDag) shed 16 sen to close at RM17.04 yesterday, while Petronas Gas Bhd (PetGas) lost 32 sen to end at RM13.40.
“Stocks like these are weakening due to foreign funds selling and also because of lower oil prices,” said one head of research.
Crude oil traded near the lowest price in three weeks on concerns that demand for fuel will be weakened with the worsening European debt crisis.
But the sell-down on the Petronas-linked stocks has led some analysts to advise their clients to “buy on weakness”.
“It (the sell-down) doesn't reflect the fundamentals and potential of the company. With the sell-down on PChem, we are advising our clients to buy as it presents a good opportunity for investors to pick up this company's shares as it is a well-managed outfit. We are expecting the company to post good profits in the second half of 2011,” said an analyst with Maybank Investment Bank.
He believes the sell-down was due to foreign players paring down their stakes after the unfavourable developments seen in Europe.
To be noted is that these Petronas stocks have been top performers in the market. PetDag is still the top performing stock on the benchmark FTSE Bursa Malaysia KLCI, with a gain of 43.5% so far this year, while PetGas has gained 17.9% this year.
Meanwhile, Petronas' shipping arm MISC Bhd has also seen its share price trending down. Moody's Investors Service has downgraded MISC's rating from A3 to Baa1 with a negative outlook, on concerns of MISC's high level of debt-funded capex as well as the challenging nature of its operating environment. The announcement of the downgrade was made in the evening, after the stock market closed. MISC added 24 sen to RM6.88. However, it is still some 19% off the RM8.50 level it was trading at early this year.
Petronas' indirect subsidiary and offshore fabrication arm, Malaysia Marine Heavy Engineering Bhd (MHB), retreated from its high of RM8.67 recorded in July, to trade near the RM6 mark. MHB shed three sen to close at RM6.10.
In a recent Bloomberg report, CIMB Investment Bank Bhd research head Terence Wong said the worsening global economic turmoil might cause investors to keep unloading Malaysian equities.
He said if the bearish mood were to continue, there would be more selling.
Overseas funds sold RM3.8bil of Malaysian shares last month, the most since October 2009, after four consecutive months of inflows, according to data compiled by Bursa Malaysia.
The net foreign outflow from Malaysia in August accounted for 31% of the total from emerging markets in Asia excluding China, suggesting that the local bourse suffered the brunt of the selling,” said a foreign bank-backed research house analyst.
About RM6.7bil of foreign funds flowed into the Malaysian stock market from April to July.

Source: The Star