Chemicals sector's recessionary outlook to worsen in H2, Citi says

Fat Prophets Global Contrarian Fund

23/08/2022 08:00

** Citi Research says low Rhine river waters' impact on
logistics costs and the German gas levy will exacerbate the
chemicals sector's recessionary outlook for H2
    ** "The only temporary respite here would likely come from
the derivatives as supply outages (TDI) and lower benzene prices
could support some near-term demand and margins," Citi says 
    ** However, it adds this could further push up inflation and
slow down economic growth, resulting in a "gloomy" overall
picture
    ** Citi remains selective on diversified chemicals, seeing
better opportunities in fertiliser and consumer names 
    ** In Europe, Citi's top picks are DSM  DSMN.AS , Arkema
 AKE.PA  and Air Liquide  AIRP.PA 
    ** In the United States, it prefers Linde  LIN.N , Albemarle
 ALB.N  and CF Industries Holdings  CF.N 
    ** It favours PCHEM  PCGB.KL , Fat Prophets global  FPC.AX 
and LG Chem  051910.KS  in Asia

 (Reporting by Dina Kartit)
 ((dina.kartit@thomsonreuters.com))