Malaysia's Plastic Packaging Sector Set to Gain From Higher Resin Prices — Market Talk

Malaysia's plastic packaging sector is likely to gain from rising resin prices amid the Middle East conflict, Kenanga IB analyst Chris Tong says in a note. Resin prices have increased by about 80% or more on average due to higher oil prices because of the Mideast conflict since end-February. Historically, higher resin prices would translate to better operating profits for the plastic packaging sector, the analyst says, as selling prices get marked up higher if costs rise. Kenanga raises its rating for Malaysia's plastic packaging sector to overweight from neutral, and pegs Thong Guan Industries and BP Plastics as its top picks.(amanda.lee@wsj.com)