Grand Pacific Trade reports – Stocks that are most likely to make the biggest moves in March 2022


London, UK — The end of the first quarter of 2022 is on the horizon and so far financial stocks have been making headlines. From companies losing their share values due to the ongoing conflict in Ukraine to multi-national corporations shifting the landscape of basic commodities and foreign currencies. So which stock is best suitable for the 2nd quarter of 2022? Grand Pacific Trade broker, Phillip Houston discusses the ins and outs of the current market trends.

The Russian Link

There is no doubt that the current European conflict has changed the market paradigm for the 2nd quarter of 2022. Millions of traders and investors are rapidly shifting their bids to accommodate for the unpredictable future for any company stocks that are even remotely connected to the conflict.

The invasion surely caught a significant portion of the economic sector off guard especially with it beginning at the endpoint of the 1st quarter.

Fast food companies such as McDonald’s have seen a recent dip in their market value since they did have to close down a lot of restaurants in Russia due to economic sanctions imposed on the nation. This led to an unpredictable situation for futures which is essentially a wild card in the world of finance and wild cards are an unacceptable characteristic of company stocks. So all in all, it’s probably best to be more moderate with such stocks at least until the markets stabilize.

Oily Waters

With the COVID-19 pandemic finally receding and normal operations going back to normal, oil is one commodity that has seen a recent uptick in demand. This has no doubt contributed to the recent price hike for oil barrels since production has yet to ramp up ever since the 2020 slump.

Another factor contributing to oil demand is the sanctions imposed on Russia which has reduced the amount of oil flowing into the market drastically especially considering that Russia is the largest supplier of oil second only to Saudi Arabia.

The lack of Russian crude in the market has led to a massive hike in demand for Arabian oil which in turn has resulted in Saudi Arabia’s national oil company ARAMCO accumulating over USD 100 billion in profits so far.

With the US President pressuring the Saudis to ramp up production to compensate for the reduced supply, it is most likely that ARAMCO is going to see a significant rise in its revenue. Although the company only publically trades a fraction of its shares, it is still worth going over their portfolios as analysts predict that the current ongoing conflict may take time to recede so ARAMCO’s share price will probably see a good rise.

Move over Dollar

It seems like oil is all the buzz these days all things considered and with ARAMCO now heading the global oil market, the company is looking to expand its system and is actively considering selling its oil to its long-time ally China in their native currency. While currency exchange is in itself a separate topic that requires discussion, this move by ARAMCO is important because it is rare that any product traded on the international market is directly sold in the native currency of the consumer country. All products from any region almost always go through dollar formats before being bought or sold. This announcement by ARAMCO will no doubt open up new opportunities since the move is pretty much signaling China’s heavy investors to put their money in ARAMCO’s publically traded shares.

This further reinforces ARAMCOs position in the international market not just as an oil company but as a corporation. Its stocks have been struggling recently and this does seem to signal a turnaround for the company’s public sector.

ARAMCO’s leading the way

Saudi ARAMCO is one of the most valuable companies in the world. Not just that its revenue to profit ratio has allowed investors to reap significant profits while minimizing any losses due to market instabilities. While the current marketplace is not exactly stable, the moves taken by ARAMCO do a lot to ensure a stable future for the company in the remainder of 2022 and the 2nd quarter does look promising for the entire market considering the current circumstances.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your research before making any investment based on your circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether to make an investment decision or otherwise.

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