Shares of Wilmar International (WLIL.SI), the world’s largest listed palm oil firm, fell as much as 2.9% on Wednesday, hit by a kneejerk reaction to China’s rate hike, which typically dampens consumer demand.
At 11:23 a.m., shares of Wilmar were 2.4% lower at $5.35 with over 5.6 million shares changing hands.
At 11:23 a.m., shares of Wilmar were 2.4% lower at $5.35 with over 5.6 million shares changing hands.
China raised interest rates by 25 basis points late on Tuesday, its second increase in just over six weeks.
“This is more of a kneejerk reaction, as investors could be concerned that a rate hike could result in lower consumer demand, which could dampen volume growth for Wilmar in China,” said an analyst.
Wilmar, which sells cooking oil, rice, flour and grains in China, could also be adversely impacted by the government’s efforts to curb food inflation by introducing price controls.
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