Investors should buy Sime Darby: Goldman Sachs

Palm Oil HQ Posted by Palm Oil HQ 35 days ago
Source: http://www.btimes.com.my
Added 35 days ago - Investors should buy PT Perusahaan Perkebunan London Sumatra Indonesia and Sime Darby Bhd after their recent drop as palm oil stocks remain attractive and prices for the commodity may gain, Goldman Sachs Group Inc said.

Prices for palm oil may rise up to 20 per cent this year on demand for biofuels and a potential rebound in crude oil, Goldman analysts Patrick Tiah and Nikhil Bhandari said in a report yesterday.

"Palm oil biodiesel is still profitable and we expect rising utilisation rates to boost palm oil demand," the analysts wrote. "There is upside potential for crude palm oil (CPO) prices due to extremely low inventories."

CPO's 13 per cent retreat from a record US$147.27 (RM477) on July 11 sparked a sell-off in plantation stocks in the region on concern lower prices will sap the appeal of palm oil as an alternative fuel. Merrill Lynch & Co and Morgan Stanley have said investors should sell commodities stocks because demand may decline.

Perusahaan Perkebunan is Goldman's top pick while Sime Darby, the largest listed palm oil producer, offers the most attractive price-to-earnings valuations, the report said. "Wilmar International Ltd is a longer-term core holding," it said.

Perusahaan Perkebunan has fallen 33 per cent in one month, Sime Darby 13 per cent and Wilmar 17 per cent.

"A pullback in crude oil prices sparked a broader selldown of commodities-related stocks," the report said. "The palm oil upcycle is not over." - Bloomberg

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Latest Crude Palm Oil (CPO) Futures Prices (Hourly)

The Chart and table below show the latest Crude Palm Oil (CPO) Futures prices, as traded on the Bursa Malaysia Derivitives Exchange.


First trading session: Weekdays 10:30 a.m. to 12:30 p.m
Second trading session: Weekdays 3:00 p.m. to 6:00 p.m
Current Malaysian local time: 12:10:29 PM Thu, August 28th 2008

Palm Oil HQ Crude Palm Oil Futures Prices
1 USD = 3.3818 MYR Updated: 12:00:03 PM Thu, August 28th 2008
Month Open High Low Last Sett.p Change Volume O.P
Sep 20082,4372,4412,4372,4412,480-39131,466
Oct 20082,4622,4802,4622,4802,501-219512,503
Nov 20082,4622,4882,4522,4882,502-1467115,251
Dec 20082,4662,4902,4632,4902,504-14868,848
Feb 2009----2,518--572
Mar 2009-2,4652,520-2,189--0
0.00---2,50002,668-0
Jul 2009----2,511--2,374
Sep 2009---2,5510984-0
Nov 2009----2,507--424
Jan 2010----2,505--886
Mar 2010----2,503--219
May 2010----2,503--1,114
Jul 2010----2,503--36

Historical Crude Palm Oil (CPO) Futures Prices

Average Historical Spot Settlement Price for Crude Palm Oil on the Bursa Malaysia Derivitives Exchange.

Palm Oil HQ Historical Crude Palm Oil Futures Prices