Thailand's Indorama Polymers (IRP): Downgrade to HOLD as stock is fully valued.

Section: Stocks - IRP's share price has surged by 76% over the past two weeks and appears to already reflect its strong earnings outlook in 2009. Moreover, net profit peaked in 1Q09 and anticipate earnings will soften in subsequent quarters despite its 50% capacity expansion in July '09. With no upside to TP, rating has been downgraded to Hold.

IRP reported impressive 1Q09 results due to its wide PET spread, lower utility costs and FX gain of Bt126m. It will expand overall capacity by 50% after its new PET plant in the US begins operations in July '09. However, the company's strategy to gain market share by giving discounts to customers after the start-up would result in lower …