Most Singapore-listed palm-oil plays stabilise after Wednesday’s sharp drops on CPO prices’ recent plunge. “For the long term, the outlook for CPO will still be stable,” says Lee Kok Joo, head of research at Phillip Securities, “but in the short term, there might still be some volatility.”
He notes CPO prices depend on a lot of factors, including the spread with soy oil. While the Malaysian commodity ministry’s plan to cut CPO export taxes to 8–10% from 23% currently may help CPO sentiment, most Singapore-listed plantation plays are Indonesia-focused.
First Resources (EB5.SG) is up 1.6% at $1.965 after Wednesday’s 5.6% drop, Golden Agri (E5H.SG) is up 0.8% at $0.64 after falling 3.1% Wednesday, Wilmar (F34.SG) is flat at $3.16 after Wednesday’s 1.3% fall and Bumitama (P8Z.SG) is flat at $1.035 after falling 4.6% Wednesday. Indofood Agri (5JS.SG) is down 1.2% at $1.285, extending Wednesday’s 3.3% decline for an around 6.6% drop month-to-date; Credit Suisse says IFAR (Indofood Agri) is among the plantation plays most sensitive to CPO prices and will suffer most from declines.
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