Shares of Singapore-listed Golden-Agri Resources (GAGR.SI) rose as much as 2.3% on Friday after it said Nestle (NESN.VS) has resumed buying palm oil from its SMART (SMAR.JK) unit.
At 9:31 a.m., shares of Golden Agri were 1.5% higher at S$0.675 with over 18.3 million shares changing hands.
At 9:31 a.m., shares of Golden Agri were 1.5% higher at S$0.675 with over 18.3 million shares changing hands.
Major palm oil consumers such as Unilever (UNc.AS) (ULVR.L), Nestle and Burger King (BKC.N) had stopped buying from SMART, which runs the Indonesian palm oil operations of its parent Golden Agri, because of environmental concerns.
SMART was given a mixed score card last year in an independent environmental audit, after Greenpeace accused the firm of clearing peatland and forests that sheltered endangered species.
“We view the move very positively as it means that the group’s effort to improve the sustainability of its crude palm oil plantations has borne fruit and this news is a strong endorsement of its green progress,” said OCBC in a report.
The brokerage added that Golden Agri’s shares could see further catalysts from the resumption of palm oil purchases by other food giants such as Unilever.
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