Kuala lumpur: Petronas Chemicals Group Bhd's share price experienced a notable rise of 1.69 per cent, reaching RM4.80, as investors anticipate stronger quarter-on-quarter (q-o-q) earnings for the second quarter of fiscal year 2026. This surge in share value is primarily attributed to robust performance in the company's fertiliser and methanol segment.

According to BERNAMA News Agency, at 10.28 am, trading volume spiked with 2.32 billion shares changing hands. CIMB Securities Sdn Bhd, in its research note, highlighted significant increases in the prices of ammonia, methanol, and urea by 54.1 per cent, 56.9 per cent, and 27.9 per cent q-o-q, respectively. These price hikes were largely driven by supply disruptions in West Asia, plant outages in the region, and elevated fertiliser demand from India.

Furthermore, the olefins and derivatives segment is expected to benefit from increased prices of ethylene, monoethylene glycol, polyethylene, and paraxylene. However, the April 2026 turnaround at the Kertih Integrated Petrochemical Complex may have limited the company's ability to fully exploit the supply shock impacts.

CIMB Securities also noted that while the specialty chemicals sector is likely to witness mixed earnings, with strong demand in India and Southeast Asia, this could be offset by persistent weaknesses in European and Chinese markets. They indicated a potential for a more bullish outlook if petrochemical spreads structurally improve due to global capacity rationalisation or if the prospective disposal of Pengerang Petrochemical Company (PPC) proceeds, which could alleviate earnings drag.

The securities firm further identified upside risks, including better-than-anticipated product spreads, average selling prices, and utilisation rates, while downside risks consist of unplanned plant shutdowns and weaker-than-expected demand in end markets. Despite these factors, CIMB maintains a "Hold" call on Petronas Chemicals Group Bhd, setting a target price of RM5.45.