UBS remains bullish on crude palm oil (CPO) prices on worse-than-expected soybean harvests and as the Chinese government increased its edible oil imports.
UBS said small plantations had outperformed others over recent months. However, larger plantation companies whose earnings had higher sensitivity to CPO prices, had started to perform well over the past two weeks, it said.
UBS said small plantations had outperformed others over recent months. However, larger plantation companies whose earnings had higher sensitivity to CPO prices, had started to perform well over the past two weeks, it said.
Golden Agri Resources, Sime Darby, and Salim Ivomas are the brokerage’s top picks for Asia’s plantations sector.
Golden Agri was down 1.3% at $0.77. Sime Darby was flat at 9.75 ringgit, while Salim Ivomas gained 1.45% to 1400 rupiah.
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