Golden Agri +2.3% despite high Malaysia CPO inventories

Golden Agri is up 2.3% at $0.66 and Indofood Agri is up 3.6% at $1.31 with their combined volume accounting for 3.6% of shares changing hands on the SGX, despite end-November Malaysian CPO inventory reaching an all-time high. “It’s running a bit of a laggard play,” amid expectations CPO prices could rebound slightly, says Carey Wong, an analyst at OCBC. But he adds, “it’s at best speculative.”
 

While some analysts expect a production downcycle, “Indonesian planters are expecting production to still be robust. (The stock price moves) may be a disconnect.” IFAR’s volume is boosted by a pre-open block trade of 20 million shares at $1.265/share. Only two shareholders own a stake that large: Van Eck Associates, which holds most of its around 23 million shares via its US-traded Agribusiness ETF (MOO), and Indofood Singapore Holdings, which has around 998.2 million shares.